Flexible furlough confirmed and changes to payments


The Chancellor has set out further changes to the Furlough Scheme, a summary of which is as follows:

1 July: The Scheme will close to new entrants.

1 July: Employers will be able to bring back to work employees who had been furloughed, for any amount of time and any shift pattern. Employees will be paid in full for time worked and employers will be responsible for tax and NICs on those payments. Employers will still be able to claim under the Scheme for normal hours not worked. Employers will have to agree with their employees any new flexible furloughing arrangements and confirm that agreement in writing.

12 June: Further guidance on flexible furloughing and how employers should calculate claims will be published.

From August: employers will have to pay national insurance and pension contributions.

From September: Employers will also have to pay 10% of wages.

From October: Employers will also have to pay 20% of wages.

End of October: The Scheme is currently planned to expire.

The published factsheet: https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps

Please do contact us if you require any further information or assistance.

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