This week the government revealed details of its roadmap regarding their job retention scheme. There are several key dates as the government slowly withdraws the scheme, gently removing the support that has been propping up the economy. The key dates:
1st of July 2020 - Employers can bring employees back to work for any amount of time or shift pattern whilst still receiving the job retention scheme subsidy to top up their wages. There is a calculator available here to work out how much you can claim.
1st August 2020 – Employers will have to pay Employers National Insurance Contributions and pension contributions. – If you are receiving the employment allowance you may not be paying any employers NI regardless therefore it is only the employer pension contributions that will change.
1st September 2020 – The job retention scheme will only pay 70% of the employee wages (up to £2187.50) and the employer will be required to top up the remaining 10%.
1st October 2020 – The job retention scheme will only pay 60% of the employee wages (up to £1875) and the employer will be required to top up the remaining 20%.
1st November 2020 – The job retention scheme will be closed however an employer can choose to continue furloughing an employee and paying 80% of their wages.
These measures are designed to ease employees back into work. The calculations for flexible furloughing can be complex especially if your employees work patterns do not fit the calculator’s standard layout. We would strongly advise consulting a qualified PAYE accountant in this situation.
All advice and services included in our blogs can be offered by our staff at MJ Baker Accountancy. Please fill in our contact form if you would like tailored advice for your business.
Michelle
MJ Baker Accountancy
