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Furlough Update

The Coronavirus Job Retention Scheme has been updated by Chancellor Rishi Sunak, with the latest updates being made on Friday 29 May. The main changes are:

●      10 June 2020 is the final date by which a claim can be made in respect of employees furloughed for the first time

●      From 1 July 2020 employers can bring furloughed employees back to work part-time (and still claim for furlough under the scheme for the hours the employee doesn’t work) - it will be up to businesses how to manage the split

●      From 1 August 2020 employers will have to pay employee's national insurance contributions and pension contributions, and can no longer reclaim them through the CJRS and a new taper requiring employers to contribute to furlough pay will be brought in

●      From 1 September 2020 the government will only reimburse 70% of salary (up to a maximum of £2,190) with employers required to top-up to 80% (or more, depending on what the employer agreed with the employee).

●      From 1 October 2020 the government will only reimburse 60% of salary (up to a maximum of £1,875) with employers required to continue to top up to 80% (or more).

●      31 October 2020 - the scheme closes

For those that are self-employed, the self-employed grant is being extended.

A second and final grant can be applied for from August - and stands alone in relation to the first grant, as in you do not have to apply for both, and may apply for the second even if you did not apply for the first.  In alignment with the furlough scheme the available grant will pay 70% (not 80%) of average earnings up to £6,750, calculated on a monthly average of the past three years using self-assessment tax return figures.

Posted on 4 June, 2020 by Ortolan

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