In order to offer continued support to organisations that have regrettably been impacted by Coronavirus, Chancellor of the Exchequer Rishi Sunak has announced that the Coronavirus Job Retention Scheme, or Furlough Scheme as it is otherwise known, has once again been extended.
Originally due to come to an end in November 2020 to ensure that additional financial support schemes could be implemented, the Furlough Scheme is now extended to 30 April 2021.
Having protected 9.6 million jobs across the United Kingdom so far, speaking on his decision to extend the Furlough Scheme to 30 April 2021, Rishi Sunak states that the most recent extension of the Coronavirus Job Retention Scheme will help the economy recover and will continue to ensure that the jobs and livelihoods of millions of people across the country are protected as we enter 2021.
As businesses across the country once again face the news and reality of a third national lockdown, at The Financial Management Centre, we have outlined a wealth of information regarding the extended Coronavirus Job Retention Scheme below.
Am I Eligible To Take Advantage Of The Coronavirus Job Retention Scheme?
As the Furlough Scheme is extended to 30 April 2021, many business owners and employers may be left questioning whether they will be able to take advantage of the extended scheme.
Irrespective of whether you have previously claimed the Furlough Scheme or not, if you cannot maintain your workforce or offer your employees their usual working hours due to the impact that Coronavirus has had on your businesses operations, you will be eligible to claim the Coronavirus Job Retention Scheme.
However, your employees must have been enrolled on your PAYE payroll scheme on or before 30 October 2020.
If your employees were not enrolled on your PAYE payroll scheme on or before 30 October 2020, you will, unfortunately, be unable to claim the Coronavirus Job Retention Scheme.
If you have previously taken advantage of the Coronavirus Job Retention Scheme and will need to continue to do so over the next few months, you will still be eligible to claim 80% of your employee’s wages.
However, it should be noted that as in previous months, the Coronavirus Job Retention Scheme will only cover up to £2,500 of wages per employee, per month.
When Must Claims Be Submitted for The Coronavirus Job Retention Scheme?
If you are hoping to take advantage of the Coronavirus Job Retention Scheme, it is imperative that you submit claims by the dates provided by the Government. As it stands, claims must be made and filed by the 14th of each month.
For example, if you are submitting a claim to help cover the costs of your employee’s wages from December 2020, you must do so by 14 January 2021.
What Is Not Covered by The Coronavirus Job Retention Scheme?
Although the Government has extended the Furlough Scheme to 30 April 2021 and will continue to support businesses, employers and employees across the country financially, employers are responsible for an employee’s National Insurance and Pension Contributions.
This means that as an employer, you must ensure that your employee’s National Insurance and Pension Contributions are submitted and paid on time.
As stated above, the Coronavirus Job Retention Scheme will additionally only offer financial support of up to £2,500 per month, per employee. If your employees wage exceeds this, you will be required to cover any supplementary costs.
What Does the Extension of the Furlough Scheme Mean For Other Financial Support Schemes?
Last year, Rishi Sunak confirmed that additional financial support, including the Job Retention Bonus, would be provided to organisations and employers across the country to minimise the impact that Coronavirus has had on day-to-day business operations.
However, as the Furlough Scheme is extended to 30 April 2021, we can confirm that these additional financial schemes have once again been postponed.
The Government has confirmed that the Job Retention Bonus now cannot be claimed until 15 February 2021. However, should the current Furlough Scheme once again be extended, it is likely that the Job Retention Bonus will be deferred.
In addition to the above, if you own a small or medium-sized business and require further financial support, it should be noted that you will now have the ability to apply for the Coronavirus Bounce Back Loan until 31 March 2021. The Government has confirmed that businesses will not incur fees or interest within the first 12 months of obtaining the loan.
What Do I Need To Do In Order To Claim The Coronavirus Job Retention Scheme?
Irrespective of whether you have previously furloughed your employees, or whether you are looking to furlough your employees for the first time, in order to claim the Coronavirus Job Retention Support, you must follow the measures set out by the Government to determine whether you can claim, uncover which employees you can furlough and calculate your claim prior to submitting a claim.
At The Financial Management Centre, our team of accountants are on hand to take the pressure of doing so off of your shoulders and submit furlough claims on your behalf.
However, if you would prefer to calculate and submit a claim yourself, you can do so via the Gov.uk website here.
Contact The Financial Management Centre Today
Irrespective of whether you own a small scale business or a large organisation, if you have unanswered questions regarding the extended Coronavirus Job Retention Scheme, please do not hesitate to contact our team here at The Financial Management Centre.
Likewise, if you are hoping to determine whether you are able to furlough your employees, or need assistance when considering claims, please feel free to contact us.
Our team of experienced accountants and bookkeepers can offer you sound advice and ensure that you have the support you need to furlough your employees.
To contact us, simply give us a call on 0333 202 7198 or email [email protected]. Regardless of the services you require, we are confident that we can support you.