Furlough scheme changes from 1 July 2021

The government has confirmed its intention that furloughed employees will be paid 80% of their wages for hours not worked under the furlough scheme.

Up to 30 June 2021, this payment will be fully-funded by government and capped at £2,500 per month.

From 1 July 2021, employers are required to contribute 10% of the 80% (capped at £312.50 per month) government contributing 70% of the 80% (capped at £2,187.50 per month).

From 1 August 2021, until the scheme is due to end 30 September 2021, employer contributions rise to 20% of the 80% (capped at £625 per month) government contributing 60% of the 80% (capped at £1,875 per month).

Readers are reminded that one of the conditions to apply for this support is that you can demonstrate that your business continues to be adversely affected by COVID disruption.

Throughout this period, employers are fully responsible for payment of any hours worked.

Latest Blog
02
May

Tax Diary May/June 2024

1 May 2024 – Due date for corporation tax due for the year ended 30 July 2023. ...

Read More
02
May

Claim tax relief on pension contributions

You can usually claim tax relief on private pension contributions worth up to 100% of...

Read More
02
May

Accessing the HMRC mobile APP

HMRC’s free tax app is available to download from the App Store for iOS and fro...

Read More
02
May

Payrolling employee expenses and benefits

Employers can register on a voluntary basis (before the start of the tax year) to rep...

Read More