Furlough scheme extended again
The Coronavirus Job Retention Scheme (CJRS) had been due to finish at the end of April 2021. Today it's been announced that it will be extended again until the end of September. Employers will, however, start to bear more of the cost of the scheme as it’s wound down. What's the full story?
Currently under the CJRS, employers can claim for 80% of a furloughed employee’s salary up to £2,500 per month, only needing to pay employers' NI and pension contributions in relation to these grants. However, they will need to start contributing more from July (currently just after the last stage of the roadmap to exiting lockdown restrictions) onwards as follows:
- From July, they will also have to contribute 10% of furlough pay. This means that they will only be able to claim for 70% of furlough pay and must make up the difference so that furloughed employees continue to receive the 80% minimum.
- From August, this contribution increases to 20% of furlough pay. This means that employers will only be able to claim for 60% of furlough pay and must make up the difference so that furloughed employees continue to receive the 80% minimum.
More information can be found here.
Related Topics
-
The Deputy Prime Minister, SDLT and a tale of woe
You can’t have missed the recent furore surrounding the apparent tax dodging exploits of Angela Rayner. The issues involved might seem remote for most taxpayers, but are there lessons to be learned for all of us?
-
In-year relief claim? Prove it
Taxpayers not in self-assessment and who need to claim relief on pension contributions must now send evidence to HMRC. What’s the full story?
-
HMRC has withdrawn Form 652. How should you notify VAT errors going forward?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.