We’re all scarmbling to decipher the new rules for the extended job retention scheme. In a nutshell, we think it means the following:
- Employees who were not furloughed before can be. Their furlough pay is based on the pay and hours in October 2020. The rules for previously furloughed employees stays the same.
- The percentage the govenerment pays has gone back up to 80% (subject to the £2,500 maximum). The employer however has to pay employers NI and employer pension contributions.
- The scheme has been extended until 31 Jan 2021
- The Job Retention “bonus” of £1,000 per employee which was due to be paid in February will now not be paid (although it may be re-introduced for a later time)
- HMRC are apparently going to publish details of employers who claim (sounds like they’re trying to shame employers into not claiming).
If you are self employed there will be another payment that can be claimed. HMRC will be letting you know whether you can claim from 30 November 2020.
The guiding link is attached here.