Key changes to the furlough scheme
Changes to the furlough scheme are coming into force from 1st May. HMRC has made a number of changes to how the Job Retention Scheme works for furloughed workers
Changes from 1st May 2021
For periods starting on or after 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee.
You do not need to have previously claimed for an employee before the 2nd March 2021 to claim for periods starting on or after 1st May 2021.
You can still claim 80% of their usual salary for hours not worked up to a maximum of £2500 per month. This will continue for June
Changes from 1st July 2021
From 1st July the level of grant will reduce to 70% with a maximum of £2187.50 per month. Employers will need to make up the extra 10% to pay the employee 80% of their normal pay.
Changes from 1st August
For the last two months of the scheme, the level of grant will reduce to 60% with the employer contributing 20% to the employee’s wages.
The maximum grant will be £1875.00 per month.
These changes mean that organisations will be granted much more flexibility in furlough decisions in the future. Organisations will be able to furlough those who were recruited between 31 October 2020 and 2 March 2021, meaning the scope for furloughing staff is going to be wider.
If you wish to discuss these changes to the furlough scheme, the options for your individual organisation moving forward or you have any questions regarding eligibility, please get in touch with us. We are here to help you through these ever-changing times and provide you with the support you need.