Furlough Scheme (Coronavirus Job Retention scheme) – update and recent changes

Watch the following video for the the recent changes in furlough scheme.

From 1‌‌ September HMRC will now pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.

What you need to do now if you operate Furlough scheme?

• Continue to pay furloughed employees 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. Employers will need to fund the difference between this and the CJRS grant themselves.
• The caps are proportional to the hours not worked. For example, if an employee is furloughed for half their usual hours in September, employers are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
• Continue to pay furloughed employees’ National Insurance and pension contributions from your own funds.

Don’t forget to read our related blog Furlough Fraud to find out what it is and what are the penalties.

Get in touch with Naail & Co for further advice or click here to book a telephone appointment.

RELATED BLOGS:

Furlough Fraud

Employment allowance (EA) and CJRS