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 with a UK bank account and UK PAYE schemes can claim grant

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.

Keep up to date with all of your payroll, HMRC and tax related questions by checking out our blog weekly!