Chancellor announces further financial help

Furlough Scheme extended until March 2021

The Chancellor Rishi Sunak has recently announced that the furlough scheme will be extended until the end of March 2021. This comes just a few days after the government announced the scheme would be extended until 2 December 2020. This was due to the second national lockdown across England which started on 5 November and is scheduled to run until at least 2 December 2020.

The chancellor has said that he has extended the scheme further to offer businesses and employees protection through the winter months. The statement came after the Bank of England announced they are investing an additional £150bn into the UK economy.

Will there be any differences in the furlough scheme?

During the last few months of the furlough scheme businesses were asked to start increasing their contribution to employee remuneration. In this extension, the government is going to pay 80% of employee wages as they did in late March 2020. However, employers are being asked to pay pension and national insurance contributions.

Employers will still be allowed to bring staff back part-time and furlough them for the remainder of their contacted hours to aid flexibility.

Do I qualify for the furlough scheme?

To qualify for the furlough scheme employees must have been on the employer’s payroll on 30 October 2020. It is worth noting that employees do not have to have been on the furlough scheme before.

What other support is available for businesses?

Businesses will also be able to claim the Local Restrictions Support Grant worth up to £3,000 per month if their business is forced to close.

Businesses will receive £1,000 for every furloughed employee kept on until at least 31^st January 2021. Plus, £1,500 for each unemployed 16-24-year-old given a high-quality six-month work placement. Businesses will also receive £2,000 for every under-25 apprentice taken on until the end of January.

What about self-employed?

Self-employed individuals will receive increased support through the Self-Employment Income Support Scheme (SEISS). Self-employed individuals will now be eligible for a third grant worth up to 80% of average trading profits up to a maximum of £7,500. This will cover November to January.

To find out more please the HMRC website here

How can we help?

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