Furlough update:


APT Accountants roterham
Making taxation simple

From the 1st July, the Job retention scheme grant will reduce from 80%.


To be eligible for the grant you must continue to pay your furloughed employees for hours not worked by the employee. The following changes take effect:


July 2021: The government will contribute 70% of the employees wages, up to a cap of £2,187.50 per month for the time they spend on furlough.


August 2021: The government will contribute 60% of the employees wages, up to a cap of £1875 per month for the time they spend on furlough.


September 2021: The government will contribute 60% of the employees wages, up to a cap of £1875 per month for the time they spend on furlough.


As the employer, you are responsible for making the employees wages up to 80% of the employees wages for the hours not worked by the employee. This means that the employee should receive 80% of their usual wage to a maximum of £2500. employers are also responsible for paying the Employer national insurance and employer pension contributions.


Employers can continue to top employees wages above the 80% & £2500 cap for hours not worked at their own expense.


All employees qualify for the scheme, under any type of employee contract, as long as their wages are reported through the PAYE Real time information (RTI) and an RTI submission was made to HMRC between the dates of 20th March 2020 and 2nd March 2021.


If your furloughed employee becomes sick including due to coronavirus, or for the clinically extremely vulnerable, their statutory rights apply. This means that the employee must be paid minimum rate of SSP. It is up to the employer to decide whether to move the employee to SSP, or to leave the at the furlough rate.



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