• YK Chartered Accountants

Furlough Self Employed Scheme - Update

The Chancellor has announced some changes to the government’s Corona virus support schemes.

From 1 July, businesses will have flexibility to bring back furloughed employees part time under the Corona virus Job Retention Scheme. This will be a month earlier than previously announced.

Claims from July onwards will however be restricted to previously furloughed employees and employers that are already using the scheme. New entrants will be not be eligible for the scheme from 30 June, with the last three-week furloughs before that point commencing on 10 June.

Employers will be responsible for the working hours and shift patterns of employees upon their return and will also be responsible for paying their wages whilst in work.

We have provided a summary of the expected changes in the coming months as follows:

June and July 2020

Government will pay 80% of wages up to the £2,500 cap, along with employer National Insurance (NICS) and pension contributions. Employers are not required to pay anything during this period.

August 2020

Government support through the Job Retention scheme will be tapered and employer's contribution increasing as people return back to work.

The Government payments remain as the June and July period, however employers will be required to pay employer NICS and pension contribution.

September 2020

Government’s contribution to furlough wages will fall to 70%, up to a £2,187.50 cap.

To make up the 80% and cap of £2,500, employers will pay employers NICs and pension contributions and 10% of wages.

October 2020

The government furlough contribution of wages falls to 60% and up to a cap of £1,875. Employers will pay 20% of wages and employer NICs and pension contributions and to make up the 80% total up to a cap of £2,500.

If you require any help an advice, get in touch:

17 views0 comments