We have all seen the news over recent weeks and the announcement that the Job Retention or Furlough Scheme has been extended through to March 2021. This article gives a summary of the extended scheme and other changes to Government financial support.
Claims relating to November, December and January can be made for 80% of an employee’s usual salary, for hours not worked. As previously this will be capped at £2,500 per month. Unfortunately however, employers will now be forced to cover their portion of National Insurance and Auto Enrolment pension contributions.
The Government will later announce the percentage of wages that can be claimed during February and March 2021.
Important dates and deadlines
We are pleased to confirm we remain ready to submit your applications for November and subsequent claims. Businesses who have never claimed furlough amounts before are free to claim under the extended scheme. Similarly, employees need not have been previously furloughed to benefit under the extension. However, employees must have been employed and be on their employer’s PAYE payroll as of 30 October 2020.
Employees made redundant after the 23 September may be re-employed and included in the Furlough Scheme. As previously, employers are able to bring workers back part-time and still claim furlough payments for the hours not worked.
It is important to note that HMRC now require furlough claims to be submitted by the 14th of the following month. Consequently, is vital for all clients to ensure that our Payroll Department has full details, including hours worked as soon as possible.
HMRC to publish company data
From the December claims onwards, HMRC will publish company names and registration numbers of those making a claim. The aim is to create a more transparent system and reduce the number of fraudulent or incorrect claims being made.
The Job Support Scheme
With the announcement of the Furlough Scheme extension, the Government have delayed any implementation of the Job Support Scheme. There is now only the Furlough Scheme available.
£1,000 Job Retention Bonus
Many employers were looking forward to receiving the £1,000 per employee retained bonus in the New Year, as promised by the Government. Sadly with the Furlough Scheme extended, this too has been postponed until further notice.
If you have any queries on the extended Furlough Scheme or any other Government support packages, please let our Payroll Team or your Accounts Manager know and we will be happy to assist. You can also read more about us and our services here. You can also email or call us on 0161 370 9600.
This article does not constitute financial advice. This information included in the article was correct to the best of our knowledge at the time of writing and may be subject to change. We recommend contacting our office to discuss your individual circumstances.