Furlough scheme extended again
The Coronavirus Job Retention Scheme (CJRS) had been due to finish at the end of April 2021. Today it's been announced that it will be extended again until the end of September. Employers will, however, start to bear more of the cost of the scheme as it’s wound down. What's the full story?
Currently under the CJRS, employers can claim for 80% of a furloughed employee’s salary up to £2,500 per month, only needing to pay employers' NI and pension contributions in relation to these grants. However, they will need to start contributing more from July (currently just after the last stage of the roadmap to exiting lockdown restrictions) onwards as follows:
- From July, they will also have to contribute 10% of furlough pay. This means that they will only be able to claim for 70% of furlough pay and must make up the difference so that furloughed employees continue to receive the 80% minimum.
- From August, this contribution increases to 20% of furlough pay. This means that employers will only be able to claim for 60% of furlough pay and must make up the difference so that furloughed employees continue to receive the 80% minimum.
More information can be found here.
Related Topics
-
Electronic VAT return and payment due
-
Received a P800? Check how HMRC has used your allowances
Some HMRC P800 tax calculations can produce too much tax where a taxpayer has several different types of income and allowances are not allocated in the most favourable way. People with employment or pension income alongside savings, dividends or other income are particularly at risk here. Could HMRC be charging you too much?
-
Deadline to notify HMRC that you have a tax liability