News & Insights

The government coronavirus job retention scheme (also known as furlough scheme) has been extended through to March 2021.

The job retention scheme which was initially introduced in 1 March 2020 will continue to run and provide employees with 80% of their current salary.

Similar support will be seen (and appreciated) by self-employed individuals with the Self-Employment Income Support Scheme (SEISS) providing a third grant covering November 2020 to January 2021 calculated at 80% of average trading profits.

The extensions above, come as the government recognise the lasting effects of coronavirus on businesses. At the time of writing 3.9% of businesses (averaged across all industries) have permanently ceased trading with an all industry average of 85% of businesses are currently trading (5-18 October 2020 ONS).

The effects of coronavirus are widespread, limiting businesses ability to trade safely, provide work for employees and make a profit.

The job retention scheme allows employees to be paid 80% of their wages, through the employer paying the employee initially (80% or more) and reclaiming this (80%) from HMRC.

There are nuances in the use of the furlough scheme by employers, including when the employee is paid in relation to when the employer receives the HMRC grant. In using the scheme it is vital for employers to follow reporting requirements and enter effective agreements with employees.

If you wish to discuss the impacts of coronavirus on your business, the process and requirements of the government furlough scheme, or the creation of policies to protect your employees, Laceys provides specialist employer advice. Please contact one of our team for further advice.