The Furlough Scheme Extension
As of the 5th November 2020, the UK Governments Furlough Scheme has been extended further by 5 months. Therefore, the new projected end date for the scheme is the 31st March 2021.
And not to worry if you have not applied for this scheme previously, it is now available for new applicants.
There is now a monthly deadline to process these claims. Claims on/after the 1st November must be submitted within 14 calendar days after the month they relate to unless it falls onto a weekend then it will be the next commencing weekday.
Claims for periods up to the 31st October will not be accepted beyond the 30th November. Consequently, claims are subject to eligibility and conditions in place at that time.
On GOV.UK, search the “Coronavirus Job retention Scheme” as it will outline the full eligibility criteria.
Back in March 2020, Rishi Sunak, the UK Chancellor of the Exchequer, announced Furlough was promoted to help tackle the outbreak of the coronavirus (COVID-19).
This scheme would help businesses pay staff, that are furloughed, during their time of the business not trading.
UK based businesses can apply for the scheme and receive 80% of their employees pay for the hours they are unable to work – a maximum of £2500 a month can be supplied.
With this being published some changes have been attached, such as Employers will only be asked to cover National insurance and employer pension contributions for the hours not worked.
In January, the Coronavirus job retention scheme will be reviewed as to whether the economic circumstances are improving enough for employers to be asked to increase contributions.
What you need to do for your claims – for periods from 1 November
- Read the new guidance – go to GOV.UK and search ‘Extension to the Coronavirus Job Retention Scheme’ – to check if you are eligible.
- Agree working hours with your employees you wish to furlough for November and agree on any changes to their employment contract.
- Work out how much you can claim for your employees using our CJRS calculator and examples on GOV.UK.
- Submit any claims for periods from 1 November no later than 14 December.
Employers will need to keep the records that support the amount of CJRS grant they claim, in case HMRC need to check it. Employers and authorised agents can view, print or download copies of previously submitted claims by logging onto their CJRS service on GOV.UK.
These schemes are designed to give certainty in the winter period for those businesses in need.
If you need any help with sorting your business Furlough Scheme, please get in contact with us, we want to make this time as easy as possible for business owners.
In the corporate world, sometimes things aren’t exactly black and white when it comes to accounting procedures.
George W. Bush
