Furlough – the Ending credits of an epic

In early 2020, the world was introduced to the ‘furlough’ word as UK PLC closed down with 80% wages covered by grants provided through the Coronavirus Job Retention Scheme.

The scheme, a temporary measure to combat the COVID-19 impacts on UK society, has aided over 11 million individual employments, avoiding mass redundancies.

The CJRS scheme closed on 30th September 2021. Employers who used the scheme to the end now need to ready their final September furlough grant claims for submission by the final deadline of Thursday‌‌ ‌14‌‌th October 2021.

Employers can claim 60% of furloughed employees’ usual wages for the hours not worked, up to a cap of £1,875 per month per employee.

For those using it to the end, they needed to contribute 20% from their own funds so that furloughed employees continue to be paid at least 80% of their usual wages in total, for the hours they do not work (up to a cap of £2,500 a month).

What you need to do now:

  • work out how much to claim, and the contribution needed to reach 80% of usual wages, by searching ‘Job Retention Scheme’ on GOV‌‌.UK
  • submit any claims for September, no later than Thursday‌‌ ‌14‌‌th October 2021
  • keep records supporting the grants they claim, in case we need to check them
  • make sure they pay CJRS-related employee tax and National Insurance contributions to HMRC, and contact HMRC if struggling to pay
  • include grants in their Self Assessment return, if they usually file one
  • search ‘Plan for Jobs’ if you want to see other support that may be available to your clients.

The end of the CJRS – other UK Government support available

You can find everything you need to know about the CJRS on GOV‌‌.UK by searching ‘Job Retention Scheme’.

Below are some answers to frequently asked questions:

What support is available if unable to bring employees back to work?

There’s UK Government support available for employees through the JobHelp website, offering a range of support, training and advice, to help people find their next opportunity. This includes the Kickstart scheme and other Plan for Jobs support measures, along with advice on learning new skills and finding out who’s recruiting. Search ‘Plan for Jobs programmes’ on GOV‌‌.UK, for more information.

Normal redundancy rules and protections apply to furloughed employees – search ‘redundancy rules’ on GOV‌‌.UK for more information.

What support is available to help business grow?

If looking to grow the business, the UK Governments Help to Grow scheme offers management and digital programmes, to help learn new skills and reach more customers. Search ‘Help to Grow’ on GO‌‌V‌‌.UK to register their interest.

If employers are considering taking on new employees, there’s a range of UK Government support available to help, including placements, apprenticeships and training opportunities. Search ‘Plan for Jobs programmes for employers’ on GOV‌‌.UK to find out how business can benefit.

PAYadvice.UK 6/10/2021

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