September Is The Last Month For CJRS “Furlough” Grants
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.
“Usual hours” for flexible furlough claims
Although it is not a change announced by the Chancellor on 8 July we thought that we would take this opportunity to alert you to HMRC guidance on the calculation of “usual hours” for the purpose of the new flexible furlough scheme that started on 1 July.
Coronavirus Job Retention Scheme and Self-Employed Income Support Schemes extended
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.
Impact on the high-income child benefit charge
With many employees and the self-employed being furloughed, being made redundant or making lower profits their income for 2020/21 may well fall below the £50,000 limit at which child benefit starts being taxed. The charge is 1% for every £100 that adjusted net income exceeds £50,000 multiplied by the child benefit claimed in respect of the children.
New “furlough” system for employee wages up and running
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.
