Chancellor extends Coronavirus Job Retention Scheme

The Chancellor has outlined the government’s plans for the future of the Coronavirus Job Retention Scheme, confirming that the scheme will be extended until the end of October.

What the future holds for the scheme

The scheme allows employers to furlough employees - including limited company directors who are employees of their companies - and apply for a grant that covers 80% of their usual monthly wage costs, up to a maximum of £2,500 a month.

The scheme, which was introduced in March, has now been extended to 31st October 2020. The Chancellor, Rishi Sunak, has indicated that from August, companies will be asked to "start sharing" the cost of the scheme. He also announced that from August, the scheme will provide “greater flexibility” to allow some employers to bring furloughed employees back to work on a part-time basis.

Making a claim through the Coronavirus Job Retention Scheme

If you use FreeAgent’s payroll on behalf of your clients, you can now amend employee payslip details to include furloughed days. You can then produce a monthly report containing the details your clients will need for their Coronavirus Job Retention Scheme claim. If you don’t use FreeAgent’s payroll on behalf of your clients, we’ve created a handy furlough claim calculator for monthly payroll to help you work out the numbers you’ll need.

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