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Coronavirus Job Retention Scheme

Flexible Furlough Planning | Accountancy Help with Furlough Scheme | Advice on Coronavirus Job Retention Scheme
Flexible Furlough Planning 758 513 Stepping Stones Accountancy

Flexible Furlough Planning

The Flexible Furlough Scheme was launched by the Government on the 1st July as the next stage of the coronavirus job retention scheme. It was designed to replace the initial furlough scheme and provide employers with more flexibility with regards to bringing staff back to work on a part-time basis.

Full details of the scheme can be found on the GOV.UK website however, the following provides a useful summary of the key points:

  • The scheme is operational from 1st July 2020 until 31st October 2020.
  • Claims can only be made for an employee under the new scheme if they were furloughed under the old scheme for 3 consecutive weeks between 1st March 2020 and 30th June 2020. This means that the 10th June 2020 was the latest date by which an employee must have been furloughed for the first time.
  • There are exceptions to this rule which include military reservists and employees returning from statutory parental leave.
  • All employees who were part of the old furlough scheme are eligible for the new flexible scheme.
  • From 1st August employers must start paying NI and pension contributions again.
  • From 1st September employers must contribute towards the cost of employees’ wages again. The amount of government support available will be tapered until the end of October.
  • Employers are able to decide the working hours and shift patterns of their employees. This provides companies with the flexibility to utilise staff as much, or as little, as needed.
  • Working patterns will need to be confirmed weekly in order to make a claim under the scheme.
  • Working patterns must be notified to employees in writing.
  • There is no minimum furlough period.

If you have any questions or need some assistance then please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk

Adjusting a CJRS claim for Employment Allowance | CJRS Advice Bristol | Covid-19 Business Support Bristol
Adjusting a CJRS Claim for Employment Allowance 758 513 Stepping Stones Accountancy

Adjusting a CJRS Claim for Employment Allowance

The Coronavirus Job Retention Scheme (CJRS) has been set-up by the Government to enable companies to claim up to 80% of an employee’s wages plus any National Insurance or pension contributions during the coronavirus crisis. However, many companies have been left wondering what impact this new scheme might have on their ability to claim Employment Allowance (EA).

In order to provide clarity to the situation, HMRC have recently confirmed that the rules for claiming and applying for EA WILL NOT change as a result of a claim under the new CJRS for Class 1 National Insurance (NI) costs.

Those employers who are eligible can continue to utilise the EA scheme to pay a reduced amount of NIC until their allowance runs out or until the end of the tax year, whichever is soonest. (Currently the employment allowance scheme enables eligible employers to reduce their annual NI liability by up to £4,000). Eligibility applies to a business or charity where their NI liabilities were less than £100,000 in the previous tax year.

In order to calculate how much National Insurance Contributions an employer can claim back through the scheme, they simply need to subtract any EA that is used in a specific pay period. If the employer finds that the amount of EA being claimed will not cover the total employer NIC which is due, then grants are available.

If an employer chooses to delay their EA claim and as such they have employment allowance that is unused at the end of a tax year, then they can use it to reduce other tax costs.

It is important to note that any business needs to make sure they are not receiving relief for the same costs twice, as this can be considered as fraud and may result in claims being investigated. This is where it is best to consult with full qualified accountant who will be able to provide advice, guidance and support for such matters.

If you have any questions or need some assistance then please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk

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