More on extended furlough scheme

Most employers who are eligible will be aware that the furlough scheme (the Coronavirus Job Retention Scheme) has been extended for five months – from 1 November 2020 to 31 March 2021.

The general terms for the first quarter to 31 January 2021 are:

This is a welcome extension for many businesses that were facing difficult choices as the previous furlough scheme ended 31 October 2020.

 

Readers should note that the amounts of government support – 80% capped at £2,500 for hours not worked – only applies to 31 January 2021. During January, these rates may be changed, and much will depend on the economic challenges at that time. We will of course publish any changes announced in the new year.

Employers claiming under the new scheme should also note:

  • The previously announced £1,000 Job Retention Bonus has been withdrawn now that the furlough scheme is extended to 31 March 2021.
  • One condition of the new scheme is that employers accept that HMRC will publish information about their claim on the internet. This will include the name of the employer and a reasonable indication of the amount claimed.
  • Furlough agreements must be in place before the start of a claims period. These agreements can be subsequently varied.
  • Claims cannot be made if an employee is serving a notice period between 1 December 2020 and 31 January 2021.

Share:

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Accounting in Sheffield and Doncaster Certificates

Recently Added News

Challenges for 2021-22

The new tax year starts 6 April 2021, and without dwelling too much on the historical trickery that has landed us with this odd commencement

Read More »

Related News

Recently self-employed?

If you became self-employed after 5 April 2019 and you have submitted your 2019-20 tax return before 2 March 2021, you may be eligible for

Super-deductions, what are they?

Perhaps the most innovative give-away in the recent budget was “Super-deductions for investment expenditure”. What does this mean? Companies that invest in qualifying plant and

Quick Links