Bristol news HMRC explain how furlough changes will affect employees MetiNews.Com
MetiNews.Com - Rishi Sunak confirmed there will be some changes from July 1
Breaking News ! HMRC have confirmed that changes to the furlough scheme will be introduced tomorrow (July 1). This all comes as Prime Minister Boris Johnson said "we can't just now step back" from supporting the economy, reports the Liverpool Echo. In May, Chancellor Rishi Sunak confirmed the Coronavirus Job Retention Scheme (CJRS) would close on October 31 2020. However, there are a number of changes being made to the furlough scheme prior to the October date. From July 1, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked. The government will pay 80 per cent of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work. (Image: PA) Speaking to Times Radio, Mr Johnson said: "The Government will remain very very much engaged with people, with businesses helping everybody to get through this. "We had to put our arms around the UK economy, we had to do the coronavirus job retention scheme, the furlough scheme, all sorts of amazing loans, bounce-back loans and so on, to help businesses, we can't just now step back.
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But from August 2020, the level of grant will be reduced each month. To be eligible for the grant employers must pay furloughed employees 80 per cent of their wages, up to a cap of £2,500 per month for the time they are being furloughed. For September, the government will pay 70 per cent of wages up to a cap of £2,187.50 for the hours the employee is on furlough.
Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80 per cent of their wages up to a cap of £2,500, for time they are furloughed. In October, the government will pay 60 per cent of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80 per cent of their wages up to a cap of £2,500, for time they are furloughed.
Source = MetiNews.Com