Extended Furlough Scheme – Your Questions Answered

It’s safe to say, it’s becoming difficult to stay up to date with the changes that are occurring at the moment and that’s just from a personal point of view. Never mind ensuring your business is up to date and compliant. With the latest announcements on another national lockdown, including changes to the furlough scheme, we’ve summarised all of your questions here:

Has the furlough scheme been extended?

YES, the furlough scheme has been extended until the 31st of March 2021.

What is happening to the furlough scheme?

As part of the announcement of the second national lockdown, Chancellor Rishi Sunak has announced that the furlough scheme will run until the end of March but will be reviewed in January.

Has the extended furlough scheme replaced the Job Retention Scheme?

Prior to the latest announcement, the furlough scheme was due to end as of November and be replaced by the Job Support Scheme. As the furlough scheme has been extended until March 2021, this supersedes the job retention scheme.

Are there any changes to the original furlough scheme?

From an employee point of view, there are no changes to their pay packet. For employers however, the scheme is more generous, with them paying less towards it.

The government will put in a full 80%, with the employer only covering pension and National Insurance contributions.

Who can be furloughed?

All employees can be furloughed, regardless of their contract terms i.e full time, part time etc. However, they must have been on payroll by 30 October 2020.

I own a small business, am I covered under the furlough scheme?

Owners of small businesses who pay themselves a PAYE salary are covered under the furlough scheme.

How do I apply?

Employers can apply on the Gov.co.uk website to make their furlough claim.

What do I need to consider before claiming furlough?

• Ensure a furlough process and agreed furlough policy is in place
• The policy should be reviewed and updated in line with any Government changes or extensions on an ongoing basis
• Identify which employees should be affected
• Plan for what should happen when the furlough scheme ends

Closing thoughts

As a business owner we don’t expect you to know everything or to be on top of this whilst trying to sustain and grow your business. That’s why our expert team are here to take the pressure off and manage topics like furlough for you. From updating contracts or giving you some rest assured advice, Aspreys are here to help you.

If you’re looking for a helping hand to help you manage, contact our team today: [email protected]