As discussed in our Blog “Brexit and National Insurance – rules from 1 January 2021”, A1 certificates continue to be obtained for posted workers so that UK resident employees and employers can remain within the UK National Insurance system and exempt from local social security contributions whilst working in countries within the EU, Iceland, Liechtenstein, Norway or Switzerland. Following the UK’s exit from the EU, although the new agreement in this respect is almost a direct replica of the previous regulations, the application process for obtaining such coverage has seen some changes.
6 April 2021 signalled the start of another new tax year. Perhaps an appropriate time therefore to reflect on a recent review of awareness amongst Scottish taxpayers which found that 33% of those surveyed were unaware that the Scottish Parliament had made changes to the tax system since 2015, with a more worrying 26% completely unaware that the Scottish Parliament had powers to make changes to income tax rates in Scotland. This has resulted in professional bodies calling on Scotland’s political parties to improve awareness of devolved taxes.
The Treasury and Chancellor previously suggested that more effective tax changes would be introduced after undertaking consultation and seeking comment on the output from such consultation exercises. Therefore, instead of this being lost in the Budget Announcement a separate date, Tax Day, was set for the consultation announcements to be delivered – 23 March 21.
Following on from the Budget that was delivered by the Government yesterday, Wednesday 3rd March, it has now been confirmed that Coronavirus Job Retention Scheme (CJRS) will be extended until September 2021.
Since the Coronavirus Job Retention Scheme (CJRS) was first thrust upon us just over 10 months ago, it has acted as an unprecedented support mechanism in helping employers and employees across the whole of the United Kingdom cope with the uncertainty in surviving as a business whilst also retaining employees in their jobs. Although all jobs have not been saved, thousands of jobs, have thankfully been saved due to the scheme.
Since 6 April 2016, a tax exemption for “trivial” benefits provided to employees has been made available to employers. The legislation allows an employer to provide a benefit costing £50 or less to an employee without triggering a tax or National Insurance charge, whilst also removing the need to report.