Furlough scheme extended until September

15th March 2021

Information correct at time of last update: 22 June 2021

The Coronavirus Job Retention (furlough scheme) is extended until September, however the level of grant to employers is changing from July. Find out what’s changing and who can claim.

furlough scheme extended

Furlough scheme extended eligibility

The furlough scheme is remaining the same until 30 June 2021.

  • For periods ending on or before 30 April 2021 , you can claim for employees who were employed on 30 October 2020, as long as you have made a PAYE RTI submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee
  • For periods starting on or after 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee

In both instances you do not need to have previously claimed for an employee to place them on furlough.

From July employers will be required to contribute towards the cost of furloughed employees’ wages. To remain eligible, employers must continue to pay furloughed employees 80% of their wages for time spent on furlough (i.e. it is not possible for employers to drop the amount they pay employees in line with the reduced Government contribution).

How does the furlough scheme work?

Under the scheme, the Government will pay 80% of an employee’s salary for hours they haven’t worked, up to a maximum of £2,500 per month.

The scheme is flexible, so employees can either be fully furloughed (i.e. on furlough full-time and unable to undertake any work for you) or furloughed part-time to meet business demands.

From July, employers will be expected to contribute 10% towards to the cost of furloughed employees’ wages. This will rise to 20% in August and September, before the scheme is expected to end.

You can view HMRC’s guide to the grant level from July 2021 here.

Talk to the experts

If you have any questions about using the extended furlough scheme, get in touch with our friendly North East payroll experts.

All information correct at time of going to print/live and on the best knowledge and understanding of the author at the time. This article is for general information only and does not constitute financial advice or recommendations for individual circumstances. No responsibility is taken for any actions taken on the base of the information within this article.

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