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As we approach the end of the Tax Year and digest last week’s Spring Statement, it’s easy to overlook some of the day to day changes that are taking place.  We felt that it’s worth looking at some of the key changes that are taking effect now or in the coming weeks.

Firstly, from March 24th the old SSP rules now apply meaning no SSP is payable for the first three days of absence and is only payable from day 4 for eligible employees. That means that COVID should now be viewed as another illness and should be treated the same as any other employee sickness issue.

There are other important calendar dates to keep in mind with April fast approaching. From April 1st, hourly rates for the National Living Wage and National Minimum Wage increase as follows:

  • National Living Wage for workers aged 23 and over: £9.50
  • National Minimum Wage for workers aged 21-22: £9.18
  • National Minimum Wage for workers aged 18-20: £6.83
  • National Minimum Wage for school leavers under 18: £4.81
  • Apprentice Minimum Wage: £4.81

On April 3rd, several statutory pay rates including maternity, paternity, adoption, shared parental leave and parental bereavement pay will increase from £151.97 to £156.66.

From April 6th, sick pay will rise from £96.35 to £99.35, and the statutory redundancy weekly cap will also increase.

In addition, the Employment Allowance will increase by £1,000 (from £4,000 to £5,000) from the same date. This means eligible businesses, charities and community amateur sports clubs will be able to claim a greater reduction on their secondary Class 1 NICs and from the 2023 to 2024 tax year onwards their Health and Social Care Levy liabilities (secondary Class 1 NICs element).

Also, don’t forget that from 6th April 2022 – 5th April 2023 National Insurance contributions will increase by 1.25 percentage points and as a result, payroll will need to be updated.

If you would like to talk any of this through, please get in touch with a member of the team.