It’s 2021. Hopes of emerging from the Covid era were soon dashed as the year kicked off with a third national lockdown. For some, the retreat from normal life back to lockdown represents a mildly bothersome repetition of the past year. But for many others, it signifies the beginning of a bleak year for personal finances. And when furlough ends in April, it’s possible that mass redundancies will be the inevitable result.
With the ongoing impact of Coronavirus and subsequent belt-tightening in 2021, employee financial guidance and support will be needed more than ever before.
But for those who need this support, it’s not always clear which Government schemes are available to them. Things like the Marriage Allowance, or Tax Code changes can result in significant savings for employees – in fact, it’s estimated that thousands of UK workers could be due for a refund. Payroll teams will often be approached by employees to answer tax and pay questions when the new tax year kicks in and their payslips change. There is therefore, a major advantage to providing financial guidance to employees when they log in to receive their payslips, as was covered in this Express article during National Payroll Week last year.
Helping employees become salary savvy is one way that employers can add value and improve employee financial wellbeing. And it doesn’t have to come at a substantial cost, or involve lengthy contracts with corporate wellbeing providers. This is good news for employers, who are likely facing budget cuts in this area at a time when their employees are needing more support and guidance than usual.
At the end of March each year, PayDashboard releases New Tax Year employee guides that are designed to address all the changes to tax and pay that will transpire in the following tax year. They have been instrumental in reducing employee queries and promoting financial literacy, and have proven to be very popular among the PayDashboard user base. For example, the Marriage Allowance guide was read 23,913 times in 2020 and will be updated again in 2021 when the new guides are released.
So what changes can we expect to take place in April besides the National Minimum Wage and National Living Wage? We don’t yet know the answers, but we do know that it will be an enormously busy time for payroll and finance teams.
The New Year Tax guides are available to anyone who would like a handy resource that outlines all the changes that will take place this April.
For more tips and advice, make sure to visit the Phase 3 blog.
This blog was written by Paul Gibbons, Chief Operating Officer at PayDashboad.
Paul has an extensive background in payroll, having worked in both inhouse and bureau environments throughout his 17-year career. Paul’s in-depth understanding of the complexities of payroll enables him to fully understand how PayDashboard’s users interface with the product and the best development routes to take. He has been instrumental in driving innovation and product improvement for PayDashboard, having worked closely with clients and the Development team to ensure the product continues to deliver on client expectations. In addition to his work with PayDashboard, Paul has almost 8 years under his belt as a Chartered Institute of Payroll Professionals (CIPP) tutor.