HR Hub

April 2021 HR changes

A brief reminder of the changes happening in April 2021 as they affect HR.

  • IR35: the off-payroll working (IR35) rules will be extended to the private sector, having been delayed a year die to COVID-19. This anti-avoidance tax legislation is designed to ensure those who are employed in all but name are taxed at a rate similar to employed individuals. This will effectively shift the burden onto employers to prove that workers are in fact self-employed. See IR35 and the private sector.
  • Minimum wage: the National Living Wage increases to £8.91 per hour and its age threshold is amended so that it applies to 23-and 24-year-old workers from 1 April 2021 (previously, it was available only to those aged 25 and over). Other minimum wage rates will also increase. See Minimum wage rates from April 2021.
  • Statutory rates: the maximum unfair dismissal compensatory award increases to £89,493 and the limit on a week’s pay used to calculate certain statutory payments rises to £544. See Increase in compensation limits from April 2021. Statutory maternity, adoption, shared parental, paternity and parental bereavement pay increase to £151.97 per week and SSP rises to £96.35 per week. See Statutory parental, bereavement and SSP payments: April 2021.
  • Gender pay gap: the expected April deadline for gender pay gap reporting for private and voluntary employers has been extended by six months. See Gender pay gap reporting: 6 months’ grace.