The Chancellor has outlined the government’s plans for the future of the Coronavirus Job Retention Scheme, confirming that the scheme will be extended until the end of October.
What the future holds for the scheme
The scheme allows employers to furlough employees - including limited company directors who are employees of their companies - and apply for a grant that covers 80% of their usual monthly wage costs, up to a maximum of £2,500 a month.
The scheme, which was introduced in March, has now been extended to 31st October 2020. The Chancellor, Rishi Sunak, has indicated that from August, companies will be asked to "start sharing" the cost of the scheme. He also announced that from August, the scheme will provide “greater flexibility” to allow some employers to bring furloughed employees back to work on a part-time basis.
Making a claim through the Coronavirus Job Retention Scheme
If you use FreeAgent’s payroll, you can amend your employee payslip details to include furloughed days. This will automatically produce a monthly report in FreeAgent which will contain the details you’ll need when you make a Coronavirus Job Retention Scheme claim. If you don’t use FreeAgent, we’ve created a handy furlough claim calculator for monthly payroll to help you work out the numbers you’ll need.
To learn more about what the coronavirus crisis could mean for your business and to stay up to date with the latest news, take a look at our small business coronavirus hub.
Disclaimer: The content included in this blog post is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this blog post. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.