Reminder: Furlough is changing!
The Coronavirus Job Retention Scheme (or Furlough Scheme) has kept many businesses going since March 2020, but it’s changing again in July 2021. NOW is the time to make sure you know how those changes will impact your business and cashflow, if you haven’t checked before.
In June, employers can claim 80% of furloughed employees’ usual wages for hours not worked, up to a cap of £2,500 per month.
- From July, the percentage that can be claimed reduces, as does the maximum level that can be claimed. The figures become 70% of an employee’s usual wages for hours not worked, and a maximum of £2,187.50. Employers need to add 10% difference to the amount claimed to ensure the employee received 80% of their usual wages for hours not worked.
- In August and September, this reduces to 60% of employees’ usual wages up to a cap of £1,875. Again, the Employer must top-up the amount claimed to ensure the employee receives a total of 80% of their usual wages for hours not worked.
These changes will make a difference to your cash-flow forecast. If you track and forecast this already, we’d strongly recommend that you update it to reflect these adjust figured if you haven’t already. If you don’t have a cashflow forecast set up within the business, its a huge help in seeing where you may have gaps in your cashflow, or where it may be under pressure. Find out more here, or get in touch if you’d like our help.
- All claims under the Furlough Scheme for May 2021 must be submitted by Monday the 14th June.
- If you have over claimed under the scheme, you must repay the relevant amounts or risk penalties (or worse!) Find out more here.
We’re very happy to discuss your claims, any complications or concerns you may have about the scheme while it’s winding down. Please get in touch if you have any questions.