COVID 19 FINANCE UPDATE: FURLOUGH SCHEME EXTENDED AGAIN

The furlough scheme has been extended. The government today announced a further extension of the Coronavirus Job Retention Scheme:

• The scheme will remain open until the 30th April 2021 (it was due to finish on 31 March)
• The Government will maintain contributions at 80% (up to the cap) for hours not worked.

It was anticipated that employers may be required to contribute towards furlough costs, as was the case in Autumn this year. However until  30th April 2021 employers will only be required to pay NICS and pensions for the hours not worked.

The job retention scheme applications for November closed on 14 December. Applications for December must be made by 14 January 2021.

Note – From 1st December employers cannot recover furlough during any period of notice.

Employers can claim for up to 80% of workers’ salaries for time they haven’t worked, worth up to £2,500 a month. However, employers must meet the cost of National Insurance payments and pension contributions.  Employers may choose to top up their employees’ salaries to 100%, but they’re under no obligation to do so.

The scheme isn’t limited to those employees who would otherwise be made redundant. It applies to anyone who is furloughed by reason of circumstances as a result of coronavirus.

The next stage of financial support measures will be outlined at the Budget, due to take place on 3 March 2021.

TAX HELP FOR SELF-EMPLOYED AND BUSINESSES

HMRC has set up a dedicated coronavirus helpline for self-employed workers and business owners who are concerned about making tax payments. Call 0800 015 9559; 8am to 8pm Monday to Friday; 8am to 4pm Saturday.

You can read the full government announcement on the gov.uk website.

FURTHER INFORMATION

Previous articles relating to government support during the Covid-19 crisis can be found here:

23 October 2020: The latest financial support >>

24 September 2020: Chancellor’s Winter Economy Plan >>