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PUBLIC SECTOR CONTRACTORS IN JOB RETENTION SCHEME - FURLOUGH BOOST

We continue to support those whose businesses are affected by the current stay-at-home campaign. Public-sector contractors are another group who are unable to work on ongoing contracts due to COVID-19, and may be eligible for the Job Retention Scheme. Accounting and expert tax advice for 'contingent workers', such as doctors, locums and other medics, who operate through personal service companies (PSC) is that they can furlough themselves in some cases.

Afford Director, Paul Edwards, said: "This applies to contingent workers who are either operating through a PSC, an umbrella company, or those on PAYE as of 28 February 2020. Those who cannot work on public-sector contracts because of the coronavirus, self-isolation or office closures qualify for the scheme in full.

"It enables PSCs or umbrella companies to obtain grants to cover up to 80% of contingent workers' wages, up to £2,500 a month."

The grants cover whichever is the lower of 80% of a furloughed contingent worker's regular wage or £2,500 a month. The scheme is open for an initial three months from 1 March 2020, although it may be extended beyond that if necessary.

However, those who cannot work because COVID-19 has closed schools or childminding facilities can only use the scheme for seven working days.

If you would like help or further information from Cheshire accountants Afford Bond, please use the Contact Us form on our website at www.affordbond.com