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COVID-19 furlough scheme update

As many businesses are starting to reopen their doors the Government has made its coronavirus job retention scheme more flexible from July and employers are settling in to a new way of working. Business life may have drastically changed, but employment law still applies.

Coronavirus job retention scheme update

The Government has started to ease the lockdown allowing many more businesses to reopen. The furlough scheme will be more flexible from July and you will be able to bring staff back part time and furlough them for the remainder of their hours. From July the minimum period of furlough will be one week. Staff can still be furloughed more than once.

Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June.

The furlough scheme will not be available for new entrants after the 30th June. This means that employees that have not been previously furloughed will not be eligible to be furloughed. For staff to be eligible they must have been previously furloughed for 3 weeks by the end of June. This means that the last day that you can furlough an employee for the first time is the 10th June.

The amount of the grant for furlough is changing from August. June and July will remain unchanged. The government will continue to pay 80% of wages capped at £2500 as well as National Insurance and Pension contribution. From August employers will be required to pay employer National Insurance and Pension Contributions.

The government contribution will drop to 70% from September and the employer will be required to pay 10% of wages to make up 80% as well as employers NICs and pension contributions.

From October the government contributions will drop further to 60% and the employer will be required to pay 20% of wages to make up 80% as well as employers NICs and pension contributions.

Self-Employment Income Support Scheme

The scheme is now being extended. If you are eligible, you will be able to make a claim for a second and final grant in August. The online service is not available yet.

Claims for the first grant must be in by 13th July 2020. If you are eligible, you can claim a taxable grant for 80% of your average monthly profits covering 3 months’ worth of profits.

The HMRC will We have used the information you or your submitted on your Self Assessment tax returns to work out your eligibility.

You should check the Government website for the latest guidance in conjunction with this article, as the guidelines on the coronavirus (COVID-19) are changing daily. The guidance and the Treasury direction are inconsistent in places. You should speak to your solicitor for specific advice for your business.

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SCE Solicitors is a boutique employment law and litigation practice based in Leeds which advises clients nationwide. Please note that the information in this blog is to provide information of general interest in a summary manner and should not be construed as individual legal advice. Readers should consult with SCE Solicitors or other professional counsel before acting on the information contained here.

Jennifer Hoult
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