UPDATE: Furlough Scheme extended to 31st March 2021
You’ve probably seen that the Chancellor of the Exchequer has extended the Job Retention Scheme until March 2021.
For many employers, the extra funding will come as a big relief. But with the rules on furlough changing rapidly, you may need more information on how the extension affects your business.
Here’s what we know so far about the extended Job Retention Scheme:
- Furloughed staff will continue to get 80% of their wages to a cap of £2,500 per month until March 2021.
- Currently, you only have to pay National Insurance and pension contributions for those on furlough. In January, the government will review how much it is contributing. That means you may need to pay out more.
- You can no longer claim your Job Retention Bonus in February. ‘Future incentives’ will be announced at a later date.
- The Job Support Scheme, which would have replaced furlough, is on hold.
- If you have made staff redundant, you may be able to rehire them and put them on furlough.
- To bring someone back from redundancy, they will need to have been employed by you and on your payroll on the 23rd of September 2020. HMRC must have been notified of payment to the employee via an RTI submission on or before the 23rd of September 2020.
- You can backdate furlough agreements until the 1st of November as long as the employee was genuinely on furlough since then. To do this, you must put the backdated agreement in place with your staff by the 13th of November.
- Employers should refresh an employee’s existing pre-November furlough agreement to ensure continued periods are covered by a valid agreement.
Please check in regularly for the latest information and advice for your business.