As many of us start to return to work and some kind of normality, unfortunately some businesses are still experiencing the long-term effects of coronavirus.
If you and your business are still affected by COVID-19 and you are currently claiming on the Coronavirus Job Retention Scheme, there are some changes that will apply to your July and August furlough claims.
Previously, you could claim 80% of employees’ wages up to a maximum of £2,500 a month.
For July’s claims you can only claim 70% of employees’ wages up to a maximum of £2187.50 a month but you must still pay your employees up to the 80%.
For example, if your employee earns £1,000 a month and is currently on furlough you would still receive £700 in furlough claims, but you would have to contribute, as the employer, £100 so the employee would still receive £800.
From the 1st August the furlough rate is being reduced again to 60%. Where in July the employer had to contribute 10% you now must contribute 20%. Using the previous example of an employee earning £1,000, in August, you would receive £600 in furlough claims and have to contribute £200 towards your employees’ wages.
If your employees are self-isolating, please see our blog below on this topic
https://www.ssmith-accountants.co.uk/statutory-sick-pay-self-isolating/
If you need any help and advice on regarding your employees or furlough claims please contact our payroll department on our temporary phone line 01724 500491 or email us at payroll@ssmithaccountants.co.uk
