At the time of writing (2nd Nov), the Government has extended its furlough scheme for one month, as England prepares to re-enter lockdown for a second time on 5th November.
Hours before the furlough scheme was due to end, the Government abandoned plans to introduce the job support scheme on 1 November 2020. Instead, employees in England will receive 80% of their current salary up to £2,500 for hours not worked, initially until 30 November 2020. The Government said the month-long extension would reduce the cost for employers retaining workers, compared to the final month of the current scheme.
Cheshire Accountants, Afford Bond said: “In recent months, employers topped up furloughed workers’ wages by 20%, with the state paying 60%. Now, the Government will pay 80%.
Director, Paul Edwards, added: “Employers are still required to cover furloughed workers’ National Insurance and workplace pension contributions so you must ensure this proceeds for all your employees. I was also pleased to hear that the Treasury will help businesses which were forced to close in England are to receive grants worth up to £3,000 per month under the local restrictions support grant.”
The Chancellor said: “Now, as restrictions get tougher, we are taking steps to provide further financial support to protect jobs and businesses. These changes will provide a vital safety net for people across the UK.”
As always, if you or your business need expert tax or accountancy advice, please contact us either using the Contact Us form here on our website or call Afford Bond Nantwich Accountants on 01270 623731 or Afford Bond Wilmslow Accountants on: 01625 416380.