DSM Chartered Accountants business news update 1st June 2020 – Job Retention Scheme/ Furlough Grant, Government Announcement 29th May 2020
On 29th May the Chancellor announced furlough grant rule changes up to the end of the government grant on 31st October 2020.
Main headlines are :-
- The final date an employee can be newly furloughed and received a grant is 9th June 2020. After this date any new furloughed employees will not receive the government grant.
- From 1st July 2020 employers can bring back employees under a flexible part-time basis and employers will have to pay the employee’s work hours. HMRC detailed guidance on how this changes the furlough grant claim calculation will only be published on 12th June 2020.
- The current furlough grant being 80% of wages capped at £2500 per month plus employers NIC and employers pension will continue for both June and July.
- For August the furlough grant will remain at 80% of wages capped at £2500 per month, but will no longer include employers NIC and employers pension in the grant claim.
- For September the furlough grant will reduce to 70% of wages capped at £2187.50 per month, with employers paying 10% of the furlough so employees still get a minimum 80% of wages.
- For October the furlough grant will reduce to 60% of wages caped at £1875.00 per month, with employers paying 20% of the furlough so employees still get a minimum 80% of wages.
- The furlough grant scheme will end on 31st October 2020.