Morgan Hemp & Co - Tax Tips & News

GUIDANCE FOR OUR CLIENTS - CORONAVIRUS (COVID-19)
UPDATE 7 - Furlough/Coronavirus Job Retention Scheme - 8th June 2020

It was announced on 29th May 2020 that the furlough scheme (also known as the Coronavirus Job Retention Scheme) would be extended along with changes to how the scheme would operate. Further details are expected to be published on 12th June however, furloughing decisions may need to be made prior to the 10th June. With that in mind, we would like to bring these key dates to our client's attention.

10th June 2020 - Final date by which an employer can furlough an employee for the first time (furlough is a minimum period of three weeks, therefore the end of the three weeks will the 30th June).

30th June 2020 - Scheme closed to new entrants/employees.

1st July 2020 - Start of flexible furloughing. Employers will be able to bring back furloughed employees on a part-time basis. The hours not worked by the employee can still be claimed for (80% plus Employers NIC and Pension Contributions). Employers will be responsible for paying employees' wages while they are at work. Also, from this date, the maximum number of employees you can claim for cannot exceed the maximum claimed for in a previous period.

31st July 2020 - Final date for employers to claim for any period up to the 30th June 2020.

1st August 2020 - From this date, employers will not be able to claim the Employers NIC or Employers Pension Contribution. On average, this is 5% of a claim.

1st September 2020 - From this date, only 70% of wages will be claimable under the scheme, up to a cap of £2,187.50 per employee. (i.e. employers will be expected to pay a minimum of 10% plus Employers NIC and Employers Pension Contributions)

1st October 2020 - From this date, only 60% of wages will be claimable under the scheme, up to a cap of £1,875 per employee.

31st October 2020 - Closure of the scheme.

If you require our assistance in setting up the Government Gateway or assistance making the application please do not hesitate to contact us.

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Disclaimer
The information contained in this newsletter is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.