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Furlough scheme changes from 1 July 2021

Furlough scheme changes from 1 July 2021

Louise Hastings

From 1 May 2021 onwards, you can claim for employees who had been employed by you and were on your PAYE payroll on 2 March 2021. You must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying HMRC of the earnings for the eligible employee.

You and your employees do not need to have benefitted from the scheme before to make a claim, as long as you meet the eligibility criteria.

The government has also confirmed its intention that furloughed employees will be paid 80% of their wages for hours not worked under the furlough scheme

Up to 30 June 2021, this payment will be fully-funded by government and capped at £2,500 per month.

From 1 July 2021, employers are required to contribute 10% of the 80% (capped at £312.50 per month) government contributing 70% of the 80% (capped at £2,187.50 per month).

From 1 August 2021, until the scheme is due to end 30 September 2021, employer contributions rise to 20% of the 80% (capped at £625 per month) government contributing 60% of the 80% (capped at £1,875 per month).

The extension of the furlough scheme is not specific to any sectors, so will be open to any employers that need to rely on the scheme. The Government has updated its guidance on the scheme here.

If you need assistance with any of the above, please contact your local Moore (South) team by clicking here.