The Government are pulling the plug on support to employers for furloughed staff at the end of September as they anticipate that the economy will be back to normal by October. The grant claims for employees furloughed in the month of September are 60% of the employee’s usual pay up to a maximum cap of £1,875.
The fourth version of the CJRS “furlough” grant scheme starts on 1 May 2021 and will run until 30 September with employees affected continuing to be supported such that they are entitled to be paid at least 80% of their “usual pay” subject to a limit of £2,500 a month for hours not worked.
Date What’s Due 1 March 2021 Corporation tax payment for year to 31/5/20 (unless quarterly instalments apply) 15 March 2021 February Furlough claims must be
The furlough scheme will continue in its current form until 30 June 2021, furloughed workers will continue to receive up to 80% of their wages for the hours not worked. From 1 July 2021, employers will contribute towards the costs of unworked hours, starting with 10% in July, 20% in August and September. The scheme is set to end on 30 September 2021.
The Guidance has been updated to reflect that 30 November claims deadline has now passed. There is a new section on holiday pay updated with further clarity on when employees can be furloughed.
The CJRS has been extended to 31 March 2021 for all parts of the UK and HMRC has updated its guidance. From 1 November the Government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month. The government will review the terms of the scheme in January.
Chancellor Rishi Sunak announced on 12 May that the CJRS scheme will be extended until the end of October. The scheme will continue in its current form until the end of July with the Government paying 80% of employees wages up to £2,500 a month. For account purposes the amounts received should be credited to a “grants received” account, and this will therefore increase taxable profits of the business.
The Government stated as we reopen the economy, we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.
The Coronavirus Job Retention Scheme claims portal opened on Monday 20 April and early indications are that it seems to be working smoothly but with a few teething problems as you would expect from a brand-new system.
In outline the Self-Employed Income Support Scheme allows the self-employed to claim 80% of their average profits for the period up to 2018/19 limited to £2,500 a month, initially for a three-month period.
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