Changes to the Furlough Scheme this September

The Furlough Job Retention Scheme is changing this month as businesses will need to pay towards the wages of staff on furlough as of the 1st September 2020.

The government will be reducing their contributions from 80% to 70% of an employee’s wage up to the value of £2,187.50 a month. Employers will need to pay the 10% difference.

Since 1st August 2020, employers have also had to pay National Insurance Contributions and pension contributions for staff.

Did you know Employees are required to pay tax, National Insurance and pension contributions on the money they receive through the furlough scheme?

From October, the scheme will change again, with only 60% of the wage being funded by the government and a new law has been introduced regarding redundancy pay, meaning redundancy will not be based upon furloughed wages but full earnings.

An estimated 1.14 million employers have benefited from the furlough scheme that has so far cost the government over £34 billion. For employers there have been benefits – payments of £1,000 will be made for each member of staff who remains employed from November 2020 to the end of January 2021.

Eat out to help out

The world has started to open up, which has seen restaurants re-opening; our hungry bellies rejoice! With restaurants facing hard times throughout the coronavirus pandemic, the government have launched the ‘Eat Out to Help Out’ scheme.

What does it involve?

As it is looking to give the food industry a much-needed boost, the government have worked with traders to provide incentives to get the economy moving. These include:

  • 50% off when eating at restaurants: sit down meals and non-alcoholic drinks are included in this. The total amount the bill can be reduced is £10 per person.
  • You’ll be able to get the discount at a variety of restaurants, cafes and pubs at a range of different locations. You can use this tool as of the 20th July to see where is participating near you!
  • Outlets which opt to participate in the scheme will need to apply the discount across their menus on top of any pre-existing offers or vouchers.

Use the Finder Tool to find food near you that are taking part in the eat out to help out scheme.

The 50% discount runs from the 3rd of August and throughout the month and the discount will be applied automatically when you pay, making it nice and simple!

Takeaways are sadly not included but take this as an opportunity to get out in the open and enjoy a delicious sit-down meal.

What you need to know about the coronavirus job retention scheme – Key Dates

At Makinson and co, we are here to help! During this troubling time, we want to make sure you know what is going on and what you need to know about the coronavirus job retention scheme that the UK government have put in place.

There are several key dates that you as an employer or employee need to be aware of.

June 10, 2020 is the last date that furloughed employees can be put on furlough for the first time to be eligible for the scheme until October 2020.

June 12, 2020 as of this date the guidance on the changes to the coronavirus job retention scheme will be available on GOV.UK

June 30, 2020 the coronavirus job retention scheme will not be available to anyone who has not been furloughed for three weeks before this date.

July 1, 2020 flexible furloughing will begin meaning businesses will be able to bring back employees as and when needed. The coronavirus job retention scheme grant will cover usual hours that are not worked by the employee.

July 31, 2020 this is the final date that employers will be able to submit claims for staff that have been furloughed before the June 30th, 2020.

August 1, 2020 employers will now pay national insurance contributions as well as pension contributions for all furloughed employees.

September 1, 2020 from the state employees will have to pay 10% of furloughed employees wages plus the national insurance and pension contributions.

October 1, 2020 employers will now pay 20% of furloughed wages and national insurance and pension contributions.

October 31, 2020 the coronavirus job retention scheme ends.

For more information on the scheme please click here.