After the Prime Minister’s surprise announcement late Saturday afternoon we wanted to share the limited information we have regarding The Coronavirus Job Retention Scheme extension (also known as ‘furlough’) with clients.
The below only provides guidance on the Job Retention Scheme Extension, we strongly advise clients to seek employment/HR advice prior to placing any employee(s) on furlough or extending an employee’s furlough.
The extension will last until December 2020.
The scheme will be based on the August 2020 rules, this means employers can claim 80% of their employees normal wages (up to a cap of £2,500). The cost to the employer will be Employers National Insurance and Employers Pension Contribution.
‘Flexible Furlough’ will be allowed as per the August 2020 rules.
Employees eligible for this extension must have been on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends.
We hope to update clients when further details are announced.
Please do not hesitate to contact us if you wish to discuss any aspect of the above.