The furlough scheme has been extended until March 2021. But with new announcements and support being released so often, it can be difficult to keep up – especially if you’re a business owner in the UK.
With that in mind, we explore exactly what the extension means, how much can be claimed, who is eligible and, more importantly, how to claim this support.
How much can be claimed?
As with the previous scheme, the extended Coronavirus Job Retention Scheme (CJRS) will continue to allow employees to receive 80% of their salary for hours not worked – up to £2,500 per month. This will be paid directly to employees through PAYE.
Under the new scheme, the cost for employers of retaining workers will be less. This makes it more generous for employers than the first furlough initiative.
It should be noted that following further announcements on the 5th November, you will no longer be able to claim the £1,000 Job Retention Bonus. Instead, it will be replaced with a new incentive. Details of this are to be released over the coming weeks.
Who is eligible?
All UK employers with a UK PAYE scheme can claim for the extended support. This includes employers of businesses that are small, large, charitable or non-profit. Neither employers or employees need to have used the scheme before, but employees must have been on the employer’s PAYE payroll on 30th October 2020.
Employees can be on any type of contract. There is the opportunity to bring furloughed employees back to work (on a part-time basis) or furlough them full-time. Employers will only be asked to cover NI and pension contributions for the hours not worked.
Further information regarding criteria can be found here.
How to claim
Claims for the scheme can now be made – either by yourself or via an agent. However, to claim you’ll need:
- To be registered for PAYE online
- Your UK bank account details
- Details of your furloughed staff
- Details of your claim
Full guidance on how to make a claim can be found here.
How Nabarro Poole can help
In these uncertain times, it’s important to remember that you’re not alone. Whether you want to discuss the scheme in full or are looking for ways to ensure your business can navigate the current climate, our expert team can help you.
Budgeting and forecasting are just two areas that we can advise in. We’ll take a look at your business accounts, analysing revenue expectations and estimating future positions to give you an honest and accurate view of your organisation.
While there’s no denying that the government support schemes are beneficial, these are only temporary measures. So, it’s more important than ever that you develop your own plan for recovery. Why not take the first step today and speak to our friendly team of accountants?
Image: Courtesy of HM Treasury