Coronavirus Financial Help Update June 15 – Companies

New information for your company and employees.

New Updates on the Furlough Scheme

  • There are changes to the scheme and key dates that you need to be aware of
  • You can claim if you bring previously furloughed employees back to work part-time from 1‌‌ July (known as flexible furloughing) and how many employees you can claim for in any one claim

The Flexi-furlough (FFS)

Just prior to publication of this magazine the government has published updated guidance on the Job Retention Scheme (furlough), setting out the pathway to the phasing out of the scheme. It provides details of the complex mechanism under which flexible furloughing – part-work/part-furlough – will be allowed from 1 July 2020.

  • 10 June 2020 will be the last day that employers can place employees on furlough.
  • from 1 July, ‘flexible furlough’ is being introduced, meaning employees will be able to work part-time and be furloughed part-time.  Businesses will decide how that will work (in terms of the time split).
  • from 1 August, employers will have to pay employee’s national insurance contributions and pension contributions and can no longer reclaim them through the CJRS.
  • from 1 September, the government will only reimburse 70% of salary (up to a maximum of £2,190). Employers are required to top-up to 80% (or more, depending on what the employer agreed with the employee).
  • from 1 October, the government will only reimburse 60% of salary (up to a maximum of £1,875), and employers will continue having to top up to 80% (or more).
  • the furlough scheme will close on 31 October 2020.

What you need to do from July

  • start your flexible furloughing of employees from 1‌‌ July onwards. You can decide the hours and shift patterns they work to suit the needs of your business – you’ll pay their wages for the time they’re in work and can apply for a job retention scheme grant to cover any of their usual hours they are still furloughed for. You can still keep employees on full furlough if you need to
  • claim for periods ending on or before 30‌‌ June, by 31‌‌ July – this is the last date you can make those claims
  • claim for further furlough periods as needed – the first time you will be able to make a claim for days in July will be 1‌‌ July.

The furlough scheme is complicated and getting more so! I suggest you obtain contact us for further advice for your particular situation.

Do not forget the Bounce Back Loan

Once again it is there for sole traders and companies, so everyone is entitled subject to the eligibility criteria.

  • based in the UK
  • established before 1 March 2020
  • has been adversely impacted by the coronavirus

It is there for all small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.

Many of my clients have done it and it works and is generally quite speedy.

FINALLY, and this is a big deal….

Protect yourself from scams

HMRC says:

“Stay vigilant about scams, which may mimic government messages as a way of appearing authentic and unthreatening. Search ‘scams’ on GOV‌‌‌.UK for information on how to recognise genuine HMRC contact. You can also forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599”. 

Stay safe