As the
CJRS (furlough scheme) continues to wind down, we can prepare for the final furlough change coming on August 1 and the end of the furlough scheme on September 30.
From 1 August 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). This will be the same until 30 September 2021, when the scheme will ultimately end.
Businesses that have struggled to fully recover from the negative effects of the pandemic, having been forced into repeated lockdowns, may be faced with difficult decisions as this September deadline approaches.
One tool that might help in the decision making process is to create a forecast of business activity – based on current estimates – that predicts likely profitability, solvency and cash flow. Armed with this information, it will then be possible to try out different what-if scenarios and consider the available options for the business.
For businesses looking to improve cash flow and not currently using Cloud accounting solutions, now might be the time to look into tools which can help improve your
business’s cash flow.
If you have concerns that you may be faced with the decision to lay off furloughed staff when the CJRS closes, and are unsure how to plan for any changes, please contact your local
Moore (South) adviser.
Employers looking for alternative routes for when furlough ends, can find options
here.