T: 01332 380691
Ashgates - Accountants and Business Advisors based in Derby
  • Who We are
    • Reviews
    • Charity work >
      • 40 Something Challenge
    • Careers
    • Our Values
  • The Team
  • What we do
    • Accountancy Services >
      • Accounts
      • Audit
      • Bookkeeping, VAT & Management Accounts
      • Business Start-up Advice
      • Business Plans & Cashflow Forecasting
      • Company Secretarial
      • Payroll
      • Tax
    • Corporate Finance
    • Financial Services
    • HR Services
    • IT Services
    • Financial Software >
      • Sage
      • Xero
    • Sports Professionals
  • News
  • Contact
  • Resources
    • Spring Statement 2022
    • COVID-19 Hub
  • Who We are
    • Reviews
    • Charity work >
      • 40 Something Challenge
    • Careers
    • Our Values
  • The Team
  • What we do
    • Accountancy Services >
      • Accounts
      • Audit
      • Bookkeeping, VAT & Management Accounts
      • Business Start-up Advice
      • Business Plans & Cashflow Forecasting
      • Company Secretarial
      • Payroll
      • Tax
    • Corporate Finance
    • Financial Services
    • HR Services
    • IT Services
    • Financial Software >
      • Sage
      • Xero
    • Sports Professionals
  • News
  • Contact
  • Resources
    • Spring Statement 2022
    • COVID-19 Hub

Coronavirus Job Retention Scheme – New details in relation to the extension

30/5/2020

 
The Coronavirus Job Retention Scheme was extended to 31 October 2020 earlier in May and on 29 May 2020, the Chancellor announced more details about this extension to the scheme.  The new guidance is aimed at allowing employers to bring back staff on a part time basis, and involves employers contributing towards the cost of the scheme on an increasing basis. 

The scheme will close to new entrants from 30‌‌ June 2020.  From this point onwards, employers will only be able to furlough employees that you have furloughed for a full three-week period prior to 30‌‌ June 2020.  This means that the final date that you can furlough an employee for the first time will be 10‌‌ June 2020 for the current three-week furlough period to be completed by 30‌‌ June 2020.
Employers will have until 31‌‌ July 2020 to make any claims in respect of the period to 30‌‌ June 2020.

Flexible furloughing
A condition of the original scheme was that furloughed employees could not do any work whilst on furlough.  With effect from 1‌‌ July 2020, in order to assist employers in bringing employees back into work, employers will have the flexibility to bring previously furloughed employees back to work on a part time basis.  The Government will continue to contribute to wages for any of their normal hours they do not work at 80% up to a cap of £2,500 per month although this contribution reduces over coming months as explained below.

The employer can decide the hours and shift patterns that your employees will work on their return and you will be responsible for paying their wages in full for the hours they are working.  This means that employees can work as much or as little as your business needs, with no minimum time that employers can furlough staff for.
There are some key points to record and retain for the furloughed employees:

  • Any working hours arrangement that you agree with the employee must cover at least one week and be confirmed to the employee in writing.
  • When claiming the grant for the furloughed hours, employers will need to report and claim for a minimum period of a week but employers can choose to make claims for longer periods.
  • Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.

If your employees are unable to return to work or you do not have work for them, they can remain on furlough and you can continue to claim the grant under the existing rules.

Employer contributions
From 1 March 2020 the Government have funded 80% of wages for furlough staff up to a cap of £2,500 per month as well as the employers’ national insurance and pension contributions.  Employers are now being asked to share the cost of the furlough wages as follows: 

  • June 2020 - No change to the current position.  i.e. the Government will pay 80% of wages up to a cap of £2,500 per month as well as the employers’ national insurance and pension contributions for the hours the employee doesn’t work. 

  • July 2020 - the Government will continue to pay 80% of wages up to a cap of £2,500 per month as well as the employers’ national insurance and pension contributions for the hours the employee doesn’t work. Employers will have to pay employees for any hours they work under the flexible furlough scheme explained above. 

  • August 2020 - the Government will continue to pay 80% of wages up to a cap of £2,500 for the hours the employee does not work.  However, employers will now be expected to pay the national insurance and pension contributions for hours not worked as well as all costs for any hours worked under the flexible furlough scheme.  

  • September 2020 - the Government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work.  Employers will pay the national insurance, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500.  Employers will also pay all costs for any hours worked under the flexible furlough scheme.

  • October 2020 - the Government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay the national insurance, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500.  Employers will also pay all costs for any hours worked under the flexible furlough scheme.
    ​
  • For all periods, the cap on the furlough grant will be proportional to the hours not worked if the employee is working some hours under the flexible furlough scheme.

Comments are closed.

    Archives

    June 2022
    May 2022
    March 2022
    January 2022
    December 2021
    October 2021
    September 2021
    July 2021
    June 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    May 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016

    RSS Feed


​Services

Accounts
Audit
Bookkeeping
Business Start-up & Advice
Business Plans & Cashflow Forecasting
Company Secretarial
Corporate Finance
Financial Services
HR Services
IT Services
Management Accounts
Payroll
Sage
Sports Professionals
Tax
Xero


​Company

Who We Are
Client Reviews
Charity Work
Careers
Team Ashgates
Leave us a Review
​Terms of Use
Privacy Notice
​
Staying COVID-19 Secure in 2020
Picture
Tweets by Ashgates

​Website build : Ashgates IT
​
© ASHGATES GROUP 2022. ​ALL RIGHTS RESERVED.
5 Prospect Place, Millennium Way, Pride Park, Derby, DE24 8HG