A&M Tax Advisor Update
Well, a busy 8th July for a still relatively new Chancellor, announcing a series of measures intended to kickstart the U.K. economy. Against the backdrop of some very gloomy numbers, Rishi Sunak has outlined a number of initiatives to help the U.K. spend and build its way out of recession.
Focussing on the employment initiatives announced, there is to be:
In addition, it was confirmed that the CJRS scheme will end on 31 October. This has just entered CJRS phase 2, with flexible furloughing for employees returning to work on a phased basis. This remains mainly untested and rules have become far more complicated. It is little wonder that payroll teams are considered essential workers, and never before have they been more vital to the sustainability and success of struggling businesses.
What wasn’t announced was any National Insurance holiday, or any easements in time to pay arrangements, statutory reporting, or compliance deadlines. It remains business as usual, with much of the heavy lifting being undertaken by employers. The Autumn statement may contain more on this, along with other measures to seek to balance the books, or at least quantify the cost of borrowing which is currently paying for the above measures, so further changes are likely.
Whether the two initiatives outlined above, will indeed end up costing the Chancellor the £13 billion promised, only time will tell. A&M Taxand remains committed to assisting its clients and can provide practical support on all of the above, and wider employment tax considerations as we traverse this turbulent landscape…