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Government extends Furlough scheme
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Chancellor Rishi Sunak announced further measures to increase benefits for workers until March 2021.
Furlough Scheme extension into 2021
The Furlough Scheme extension, which was originally due to end on 2 December, will now run until 31 March 2021.
Employers can claim 80% of an employee’s usual salary for hours not worked up to £2500 up to 31 January 2021.
The Scheme is flexible. Employees can be asked to work any amount of time/ shift pattern or not at all. Businesses can claim whether they are open or closed.
Employers can claim for employees not previously eligible for the Coronavirus Job Retention Scheme as long as they were on payroll submission to HMRC by 30 October 2020.
The Chancellor of the Exchequer Rishi Sunak said: “Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.”
Employers will cover employees National Insurance and employer pension contributions for hours not worked. Right now, there is no employer contribution to wages for hours not worked.
Self-Employment Income Support Scheme
The Self Employment Income Support Scheme (SEISS) is set to increase from 55% to 80% of average profits up to £7,500. This will be the third grant offered for self-employed which runs from November through to January.
Schemes under constant review
All schemes have continually been held under constant assessment with swift changes sometimes daily or weekly. The extension to the Coronavirus Job Retention Scheme is now set for further review in January where the government will monitor the economic climate and whether employers can make contributions to wages. There is likely to be a lower percentage claim available for the period February to April 2021.
As the Chancellor of the Exchequer Rishi Sunak said: “I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed.”
(Source: gov.uk/government/news)
Accounting services
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