cheap accountants - Covid-19

Last week the Chancellor announced an extension to the furlough grant in recognition of the current and ongoing lock down. All non-essential businesses are currently closed and this has greatly impacted the earning capacity of many small businesses and impacted the livelihoods of a vast number of company directors and their employees. We do hope that all clients and their relatives are remaining to stay safe and healthy and we have our fingers crossed for an economic rebound and return to life as normal later this year (fingers crossed!). This blog post will outline what has been announced for the latest round of Furlough Grants and what this means for you and your company.

Furlough Grant Extended to 30 September 2021

The current grant was due to close at the end of April this year but this has now been extended until September. The current rate of 80% of an employees normal wage will continue to be funded by the Government for the time being. However, this is due to be reduced and tapered down once again as the UK economy is expected to improve in conjunction with the easing of lock down measures.

As is stands a grant of 80% of the normal employee wage will be claimable during the months of May and June. This is then due to fall during July on-wards, with the employer expected to once again contribute towards the cost of the employees wage.

The furlough grant will decrease to 70% during July and then fall further still to 60% during August and September. This means that employers will be expected to contribute at least 10% of the employees wage during July and then 20% during August and September.

Can I apply if I didn’t previously qualify for the Grant?

Yes you can.

You can claim if you had an employee on your company payroll on 2 March 2021 and an RTI payroll submission had been made to HMRC on or before this date notifying of a payment of earnings for the employee.

You don’t need to have previously claimed the furlough grant.

Quick Summary

  • Furlough grant extended to 30 September 2021
  • 80% of wage can be claimed during May and June
  • 70% of wage can be claimed during July
  • 60% of wage can be claimed during August and September
  • Must have payroll in place with RTI filed on or before 02 March 2021