Job Retention Scheme Update


There has been a recent Job Retention Scheme update from the UK Government.

Job Retention Scheme Update

Job Retention Scheme Update 5th November

Following the Government announcement on Saturday 31 October 2020, regarding the nationwide lockdown to commence Thursday 5 November the following was announced.

The Job Retention scheme, which ended that day, has been extended for November 2020. Furthermore at the same rates as were paid in August.

80% Furlough for Job Retention Scheme

80% of wages of all staff furloughed or part furloughed – provided that the employer has a UK bank account, and a UK PAYE scheme will be payable. The employer will have to pay the Employer National Insurance and any pension liabilities.

The cap of £2500 per month still applies.

Who will be eligible?

The scheme will apply to all employees that have been recorded on the employer’s payroll as of 30 0ctober 2020. And employees who have filed a real time information (RTI) by that date.

It is open to all companies regardless of size. You do not have to previously claim to claim this time.

The Job Support Scheme which was to commence on 1 November has been postponed until the end of the current furlough.

Job Retention Scheme – Flexible Furlough

Flexible furlough is also allowed, the employer claiming 89% of unworked hours.

Claims must be made for a minimum consecutive seven-day period. The grant must be paid to the employee in full and the employer has the option to top up the grant at their own expense

Self-Employed Support

The self-employed income support has been extended. All eligible self-employed taxpayers will receive an additional payment of 80% of their average three months declared net profits.

Business Grants

Businesses closed during the national lockdown will receive from their local councils a grant depending on the rateable value of their premises.

  • Below £15K a grant of £1334 per month
  • £15K-£151K a grant of £2000 per month
  • £51K + a grant of £3000 per month

Full details of how and when to claim are yet to be announced but it is anticipated that the previous procedures will apply.

For further assistance contact us on Facebook or send your enquiry to mike@abmaccountant.co.uk

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