Government Support for your Business
Updated 29th May 2020
This scheme has been set up to support business that cannot maintain normal operations due to Covid-19
What do you need to know…
- Portal for making claims went live 20th April 2020
- Payments processed within 5 working days
- Claim up to 80% of furloughed employees gross wages
- Furlough claim is capped at £2,500 per month per employee
- Claims can be submitted before the pay date
- Furlough payments are taxable but not repayable
- Directors can be furloughed (including sole directors)
- The scheme will stay in this current form until the end of July 2020
On 12 May 2020, the Treasury announced the following…
- The scheme will be extended to 31 October 2020
- From July 2020, employers will be able to take furloughed staff back on a part time basis
On 29 May 2020, the Treasury announced the following…
- No changes to the scheme for payments in June
- From July employers will be able to take furloughed staff back on a part time basis.
Employers will only pay for the hours their employees are working, whilst 80% of wages for the remaining hours will be covered by the the furlough grant.
- From August, employers will be required to pay NIC and minimum pension costs for furloughed employees. With 80% of wages still being paid by the government up to the £2,500 cap.
- In September, businesses will start to pay 10% of wages for furloughed staff, with the government covering the remaining 70%.
- This increases to 20% in October 2020 with the government covering 60% of wages up to a cap of £1,875.
IMPORTANT: the furlough scheme will close to new entrants from 30th June 2020.
- Furloughed employees cannot undertake any work for the business, i.e. business generating work
- Any employees working reduced hours or reduced pay as a result of Covid-19 are not eligible
- Employees can however undertake training
- Employees must be furloughed for a minimum of 3 consecutive weeks
- Sole directors are only allowed to conduct statutory duties as a director of the business, i.e. paying suppliers, running payroll
How can AOR can help you…
- We can help you work out if you are eligible
- Work out how much you can claim
- Support the process for making these claims
As ever, Adams O’Rourke are here if you need any further assistance regarding Covid-19 business support. Click here to get in touch with us.
Take care everyone!