Furlough Scheme Extension

So, lockdown is approaching… Again!

In order to support you and your employees through this next month; The Government have extended the CJRS, aka the Furlough Scheme.

Here are the basics:

  • The scheme will remain open until December
  • All employers, small and large are eligible
  • Employees are to receive 80% of wages to make up for hours not worked (just like last time) up to a maximum of £2,500
  • Employers will only be asked to cover NI and employer pension contributions. This accounts for 5% of employment costs
  • For business’ premises forced to close, the LRSG will provide grants worth up to £3000 per month
  • To ensure peace of mind for homeowners – mortgage holidays won’t end yet
  • Following the end of this, the introduction of the Job Support Scheme will be upon us

 

Mortgage Holidays

Don’t stress! They’re not ending yet!

  • Borrowers impacted by COVID who haven’t had a mortgage payment holiday are able to have a six month holiday
  • In addition, borrowers who’ve already had a mortgage payment holiday can top this up to six months without credit file recording

Business Grants

This part is for businesses that are having to close due to COVID.

  • Rateable value of:
  • £15K or below, grants will be £1,334 per month (or £677 per 2 weeks)
  • £15K – £51K, grants will be £2,000 per month (or £1,000 per 2 weeks)
  • Finally, £51K or over, grants will be £3,000 per month (or £1,500 per 2 weeks)

 

So who is eligible?… Specifically?

Employer Eligibility

  • All will a UK bank account and UK PAYE schemes can claim grant
  • NEITHER EMPLOYER OR EMPLOYEE NEED TO HAVE PREVIOUSLY USED THE CJRS

Employee Eligibility

  • Must be on an employer’s PAYE payroll by 23:59 30th October 2020
  • Can be on any type of contract
  • When claiming furloughed hours of an employee, employer must claim for a minimum period of 7 consecutive calendar days
  • Employers must report employee’s hours worked and usual hours

 

This information was published on the 31st October 2020 on the Gov.uk website.

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