Date
Jul 2nd 2021
The Government continues to support businesses with the Coronavirus Job Retention Scheme allowing UK employers with employees on a PAYE scheme to furlough some or all employees. The scheme allows employers to retain employees who might otherwise have faced redundancy. The scheme has been extended until the end of September 2021.
The scheme has evolved over the past year and now means that employees in receipt of furlough will receive 80% of their normal pay for hours not worked. As of 1st July employers will contribute 10% of their furloughed workers’ pay, and this will increase to 20% in August and September.
The Coronavirus Job Retention Scheme has been in operation since March 2020 and after several extensions will cease at the end of September 2021 when we anticipate that the new Job Support Scheme will start… but this is yet to be confirmed.
Currently, a qualifying employee will receive pay 80% of wages up to a cap of £2,500. The Government will contribute 70% and as an employer you will have to pay 10% for hours not worked plus NICs and pension contributions. In August and September 2021 the Government will pay 60% and you will pay 20% plus NICs and pension contributions.
Employers can only claim for a minimum of seven consecutive days and pay for any worked hours as normal and pay the tax and NICs due on both worked and unworked hours.
For further clarification please call our offices in Barnham, West Sussex on 0330 333 1997