Update on the future of the furlough scheme as at 29th May 2020

As schools prepare to reopen on Monday 1st June and offices reopen for work, On Friday just as we approach the end of May the The Chancellor announced the future of furlough scheme i the UK. Here is a short update of the changes announced.

• The furlough scheme cannot continue indefinitely. It will remain open until October.
• In June and July, the scheme will continue without employer contribution.
• In August, the 80% government contribution will remain; employers will only be required to pay employer national insurance and employer’s pension contributions which, for the average claim, accounts for only 5% of total employment costs.
• In September, the government contribution will pay 70% with the employers contributing 10%.
• In October, the government contribution will be 60% (up to ￡1,875), whilst employers will contribute 20%.
• What we have all been waiting to hear though is about ‘flexible furlough’ which will commence from 1 July.
• Employers can come to their own arrangements with their staff. For example, employees can return for two days a week (paid in full by the employer), with the scheme covering the other three working day. 
• The furlough scheme will close for new employees by 30 June; employees must be entered onto the scheme before 10 June.
• The Self Employment Income Scheme will be extended, and reopen in August for three months’ worth of average monthly profits. The value of the final grant will only be 70% of average monthly trading profits, capped at ￡6,570.

I am not an accountant however I dope this summary useful to small businesses and employees alike. This article is not legal advice. It is Rather a short summary of the schemes as it is updated in the UK covid19 scheme.

If you require an accountant please contact womeninthelawuk.com fora referral to an accountant at www.woeninthelawuk.com

If you require more information on the scheme, please contact HMRC.

S.Penni