From the 1st September 2020 the government's furlough support scheme starts to wind down and the amount of claim will adjust down as it closes on the 31st October 2020. The key points are listed below:
1. From 1st Aug 2020 government will not pay for NI payments both employer and employee per month
2. There is a drop from the maximum claimable 80% in August, to 70% in September and further lower to 60% in October 2020
3. From the 1st Sept 2020 government will pay employers up to a maximum of £2,187.50 a month combined with the employer contributions of 10% payable by the employer this will mean a total of £2500 a month can be paid to an employee
4. From 1st Oct 2020 employers will have to start paying 20% of the employee wages and government will sgtart paying a maximum of £1,875.00 per month
5. If any employees are retained in employment by the end of 31 January 2021 then the government has agreed to pay emlployers £1000 for each furloughed employee retained. This will be paid by the end of February 2021.
6. Furloughed staff can do courses and training while furloughed and are eligible to statutory sick pay and maternity pay etc
If employers need more help for their furloughed staff and have more complicated issues such as sick pay and maternity then call Tax Affinity Accountants the experts in small business tax and accounting services.
By Anni Khan at Tax Affinity Accountants
Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.
For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.
Our experienced accountants and tax advisers provide valuable insights into practical every day questions and issues.
Add blog to our blog directory.
Ask your own question: If you would like to have a tax related question answered here, please send your question to firstname.lastname@example.org.