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05/06/20 Job Retention Furlough Scheme Extended to October

The scheme will be closed to new entrants from 30th June 2020. From this point onward, employers will be only be able to furlough employees that have been furloughed for a full three week period prior to 30th June. This means that the FINAL DATE by which an employer can furlough an employee for the first time is 10th June in order for the current three week period to be completed by 30th June.

On the 12th May the Chancellor Rishi Sunak announced that the CJRS scheme is being extended until the end of October 2020. At the end of July the current scheme with the Government paying 80% of employees wages (up to £2,500 a month) will finish. For accounting purposes, these amounts received from the Government should be credited to a “grants received” account and this will increase the taxable profits of your business.

Starting on 1st August 2020 finishing end of October 2020 HMRC are introducing more flexibility so that employers can bring furloughed employed back to work part-time and contribute to paying employees wages while still receiving support from the scheme.

The Chancellor announced on 29th May that the Government will no longer reimburse NICs and pension contributions from 1st August 2020. From 1st September 2020 the amount reimbursed by the Government will be reduced to 70%, limited to £2,190. From 1st October 2020 there will be a further reduction to 60%, limited to £1,875.

Important Dates to Note

1. The scheme will be closed to new entrants from 30th June 2020. From this point onward, employers will be only be able to furlough employees that have been furloughed for a full three week period prior to 30th June. This means that the FINAL DATE by which an employer can furlough an employee for the first time is 10th June in order for the current three week period to be completed by 30th June.
2. Employers will have until 31st July to make any claims in respect of the period 30th June 2020.
3. From 1st July the scheme will only be available to employers that have previously used the scheme in respect of employees they have previously furloughed.
4. From 1st July 2020, claim periods will no longer be able to overlap months. Employers who previously submitted claims with periods that overlapped calendar months will no longer be able to do this.
5. The number of employees an employer can claim for in any claim period CANNOT EXCEED the maximum number for which they have already claimed under the current CJRS.
6. Employers will be able to make their first claim under the new part-time work scheme from 1st July 2020.

Camfield Chapman Lowe will of course continue to assist you in making furlough claims. Please call us on Milton Keynes 01908 583800 if you need any advice.