Changes to the Coronavirus Job Retention Scheme came into effect on July 1 as part of the UK Government’s plan to phase out the financial support from the end of September.
Businesses across the UK now have to start making compulsory contributions to furloughed employees’ wages as The Treasury’s pay has dropped to 70%, from 80%.
The wind down in the furlough scheme comes after tens of thousands of businesses were given the green light to trade again as lockdown restrictions eased.
The current change means workers on furlough will receive 70% of their pay from the UK Government – up to £2,187.50 – plus 10% of their income and pension and National Insurance contributions paid by their employer.
But more changes are on the way in August and September.
July
UK Government contribution : 70%, up to £2,187.50
Employer contribution: 10%, up to £312.50, National Insurance and pension contributions
Minimum amount furloughed employee receives: 80% of regular salary, up to £2,500
August
UK Government contribution: 60%, up to £1,875
Employer contribution: 20%, up to £625, National Insurance and pension contributions
Minimum amount furloughed employee receives: 80% of regular salary, up to £2,500
September
UK Government contribution: 60%, up to £1,875
Employer contribution: 20%, up to £625, National Insurance and pension contributions
Minimum furloughed employee receives : 80% of regular salary, up to £2,500
To help employers across the country understand the changes to the Coronavirus Job Retention Scheme, HMRC have uploaded a pre-recorded webinar, which you can view online here.
The 48-minutes covers:
- the extension of the scheme
- how employers will be affected
- flexible furloughing
- key dates
- support available
HMRC is also running live webinar sessions this month on Tuesday, July 13 at 9.45am and Monday, July 19 at 10.45am. Both sessions last one hour - you can register to join in here.
To check if you can claim employees wages through the Coronavirus Job Retention Scheme, visit the GOV.UK website here.
To check which employees can be put on furlough, visit the GOV.Uk dedicated website here.
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