November 06, 2020
Employers across the UK were appalled with the news of the further lockdowns proposed. Though the government has been praised for putting people’s health before mere economic gain the interesting element here is that the government has also been able to safeguard jobs. The good news is that the Coronavirus Job Retention Scheme has now been extended. Formerly the furlough scheme (that was previously extended for 4 months) was set to end on 31st October 2020. Now, it begins again from 1st November 2020 and will run till the end of the month to be followed by the Job Support Scheme.
※ What Are The Changes In Job Retention Scheme?
The extended furlough scheme will be more benevolent towards employers for employers need not mandatorily bear 20% of the burden as they were doing with the furlough grant set to 60%. It has now gone back to 80% from the government for employees on furlough towards the hours not worked. Thus, employers will have only 5% of a burden as the National Insurance Contributions as well as the Work Place Pension amounts will have to be borne by the employer for the hours that are not worked as well. However, considering the way furlough has been in September and October – these measures are certainly tending towards generosity.
※ When Was This Announcement Made?
The Prime Minister made this announcement on 31st October 2020. The government wanted people to know that even though it was going to be a difficult winter it did not mean that people were going to be left to their own devices. Job protection and the protection of people’s lives both remain on par with the government.
※ What Is The Duration Of The CJRS?
It starts from 1st November and will remain open till December. It is supposed to seamlessly merge with the previous scheme and so employers need not worry about putting their staff on furlough from the 1st of November. Details of how the claim is to be made are to follow.
※ How Does The Scheme Work?
※ Who Has The Scheme Been Extended To?
All employers are to be considered under this scheme be they large or small. Even charitable organisations and those working for non-profit are to be included. Flexible furlough can still be done. Thus, employers can keep their staff on the part-time working basis and for the remaining hours that the employee is unable to work the government will pay the furlough amount for as per the guidelines.
Due to the multiple changes that are taking place, employers are facing issues in remaining compliant. Doshi Outsourcing is a firm that helps employers with their accountancy, taxation, VAT and payroll matters. A firm of dedicated accountants who are ready to work on remote and are compliant with the existing GDPR.
※ Other Guidelines On The Job Retention Scheme (JRS):
※ Which Employers Are Eligible?
※ Which Employees Are Eligible?
※ How Are The Calculations To Be Made?
※ What Support Are Employers Getting Towards Wage Costs?
Furlough calculations have never been easy but with an outsourcing partner like Doshi, Outsourcing things would become infinitely easier. Instead of worrying about processing the right claim amounts, you would only need to remember to pay your employees as we will handle the tricky part of the claims.