New Furlough Treasury Direction

A new Treasury Direction has been published by HM Treasury which formally extends the Furlough scheme (CJRS) from 1 May 2021 until 30 September 2021.

This formalises the announcements made by Rishi Sunak in his budget speech on 5 March 2021, which as a reminder includes:

From 1 May 2021, you will be able to claim for employees employed on or before 2 March 2021, so long as the employer has made at least one PAYE RTI submission to HMRC between 2 March 2020 and 2 March 2021. You do not need to have claimed for this employee before - it can be a new claim.

From 1 July 2021, the level of grant will be reduced each month and employers will be asked to contribute towards the cost of furloughed employees’ wages. The government will contribute 70% up to £2,187.50 with the employer expected to contribute 10% up to £312.50.

From 1 August 2021 until 30 September 2021, the government’s contribution will reduce to 60% up to £1,875 with the employer’s contribution rising to 20% up to £625.

Posted on 6 May, 2021 by Ortolan

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