The furlough scheme has been extended until 30th September 2021 with the government continuing to contribute 80% towards wages – giving businesses and employees across the UK certainty into the New Year.
The government will continue to pay 80% of the salary of employees for hours not worked until the end of June. Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.
From July 2021, Employers will be required to make a partial contribution towards their employees furlough payments.
How does it work?
Employers can fully furlough their employees until 30 September 2021 if they feel the need.
Employees can be required to take their holiday during this time, with employers having to top up the furlough pay, and then claim the 80% support, with employers required to make up 10% from July, 20% from August, and 30% in September 2021.
What are the terms of this scheme?
It will be available for small and medium sized businesses, and is open to businesses even if they didn’t use the furlough scheme, for employees on payroll as at 30th October 2020.
Employers are still responsible for paying employers national insurance, and employer pension contributions.
Flexible and full furloughing will still be allowed.
Employers can still choose to top up employees wages.
Businesses will not be able to issue redundancy notices to employees while taking part in the extended furlough scheme and there will be restrictions on capital distributions to shareholders for larger businesses while they are in receipt of money for their workers on this scheme.
When can I claim?
The furlough portal will be open from 11th November 2020.
Furlough claim portal
There are some new deadlines you need to be aware of.
Claim for days in November 2020 – Deadline for claiming 14th December 2020
Claim for days in December 2020 – Deadline for claiming 14th January 2021
Claim for days in January 2021 – Deadline for claiming 15th February 2021
Claim for days in February 2021 – Deadline for claiming 15th March 2021
Claim for days in March 2021 – Deadline for claiming 14th April 2021
Claim for days in April 2021 – Deadline for claiming 15th May 2021
Claim for days in May 2021 – Deadline for claiming 14th June 2021
Claim for days in June 2021 – Deadline for claiming 14th July 2021
Claim for days in July 2021 – Deadline for claiming 16th August 2021
Claim for days in August 2021 – Deadline for claiming 14th September 2021
Claim for days in September 2021 – Deadline for claiming 14th October 2021
HMRC may accept a claim made after the relevant deadline if you had a reasonable excuse for failing to make a claim in time and you then claimed without delay after the excuse no longer applied.
HMRC will not consider reasonable excuses in advance of a claim deadline.
If you want to delete a claim in the online service, you must do this within 72 hours of starting it.