On 12th June the Government has announced that the Coronavirus Job Retention Scheme will close on 31st October 2020 – at this point no further aid will be given for furlough as the scheme will be tapered off from August onwards.
June is the last date that new furlough claims can go in, if they haven’t been done by then, you will miss out!
What is flexible furlough?
From 1st July the Government have announced that employers can start introducing their staff back to work on occasional days and still be able to claim for the furlough days for that employee. This will be a great help in getting business’ back to their ‘new normal’.
Deadline to Furlough…
The Furlough deadline has now passed, so if you haven’t made your employee furlough on or before the 10th June, you will not be able to make a claim for them on 30th June as they needed to be on furlough for a full 3 weeks prior to this date.
Dates to remember…
The CJRS will start to be reduced and slowly tapered off over a graduated period of 4 months which will mean that employers will have to start contributing towards the cost of paying their employees
June – The CJRS will continue as normal, paying 80% of the employees’ wages (up to £2,500) plus employers costs of national insurance and pension contributions.
July – Flexible furlough can be introduced and claimed as last month, reduced by the amount of hours the employee has worked.
August – The government will still continue to pay 80% of the employees’ wages however employers will now be required to pay the employers contributions towards the employees’ pension and national insurance which equates to 5% of the gross employment costs (the employer would have incurred had the employee not been furloughed.)
September – The government will reduce the CJRS and will pay 70% of wages up to a cap of £2,187.50, employers will continue to pay the ER NICs and pensions contributions as well as the 10% deficit up to the £2,500 cap – this now equates to 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
October – The government will make their final reduction to the CJRS and will pay 60% of wages up to a cap of £1,875.00, employers will continue to pay the ER NICs and pensions contributions as well as the 20% deficit up to the £2,500 cap – this now equates to 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.