Employers in the United Kingdom will be expected to pay National Insurance and pensions contributions for their furloughed employees from August. Also, the application for the scheme (Coronavirus Job Retention Scheme – CJRS) will be closed from 30 June. At the same time, the Coronavirus Large Business Interruption Loan Scheme was increased from £50 million to £200 million on 28 May.
The Government will continue to pay 80% of employees’ wages for August, up to £2,500 per month. In September, employers will be asked to pay 10% of their furloughed employees’ wages with this rising to 20% for October.
Throughout this period, furloughed employees will continue to receive 80% of their wages.
Furlough Scheme payment schedule:
|Month||Employees have to pay|
10% of furloughed employers’ wages
20% of furloughed employers’ wages
All contributions and wages
(the scheme will be over)
From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of a week.
The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.
This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.
>>> More information can be found HERE <<<
Large Business Interruption Loan Scheme
In a further change to an existing government support scheme, on May 26 the amount of support available to businesses under the Coronavirus Large Business Interruption Loan Scheme was increased from £50 million to £200 million. The scheme is designed to help UK-based medium and large-sized businesses with an annual turnover of over £45 million to access loans and other types of finance. It is important to note that only companies that have not received support under the Bank of England’s COVID-19 Corporate Financing Facility (CCFF) are eligible for the loan. During the application, businesses should prove that they would be viable were it not for the pandemic, have been affected by the coronavirus and the loan will enable them to trade out of any short-term to medium-term difficulty resulting from coronavirus.
The government guarantees 80% of the finance to the lender. The lender can provide up to 25% of a company’s annual turnover. To date, 154 Coronavirus Large Business Interruption Loans have been approved worth over £820 million.
>> More information can be found HERE <<<