Coronavirus Job Retention Scheme extended to October

In the latest COVID-19 announcement, Chancellor Rishi Sunak has advised that the scheme to pay workers’ wages will continue until October.

The government Coronavirus Job Retention Scheme, where furloughed employees continue to receive 80% of their monthly wages up to £2,500, was originally due to end in June.

Getting back to work

This extension has been designed to introduce flexibility from August to get employees back to the workplace. Further details of how this will look and be implemented will be announced late May 2020.

The government website indicates that: ‘From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.’

Research has indicated that the scheme has ‘protected 7.5 million workers and almost 1 million businesses.’

In response to the announcement, the BCC (British Chambers of Commerce) Director General Adam Marshall said: ‘The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK…Our research shows that the scheme has become a key part of wider government support for businesses, with more than 70 per cent of firms surveyed furloughing a portion of their staff.’

Need accounting advice for your business?

In light of this latest government announcement, whether you’re an existing client or would like to seek advice on how this affects your business and the steps you need to take, then get in touch with one of our chartered accountants. While we may not have all the answers right now, we can offer guidance on your current status to help get your financial accounts in good order during this time to stand you in good stead for the future.