Furlough scheme winding down
From 1 July 2021, employers must now pay part of employees’ furlough wages as the Coronavirus Job Retention Scheme (CJRS) starts to wind down. What's the full story?
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New HMRC guidance on winter fuel payments
HMRC has released new guidance on the recovery of winter fuel payments. What do you need to know?
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Festive tax breaks for remote workers
You’re familiar with the tax break for Christmas parties but you now have a few remote workers, and the company will need to reimburse their travel and accommodation costs if they attend an event. Which costs count towards the tax-free limit and how can you manage any overspend?
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New process for some exports starting in Northern Ireland
Starting next month, businesses that import goods via Northern Ireland will need to change their processes. What do you need to know?
For claim periods ending on or before 30 June 2021 employers could claim from the CJRS 80% of an employee’s usual wages for hours not worked, up to a maximum of £2,500 per month, and only needed to cover the employers’ NI and auto-enrolment pension contributions. However, for claim periods from 1 July 2021, the level of government grant under the CJRS is being gradually reduced and employers must now contribute towards the cost of r furloughed employees’ wages as follows:
- July - government contribution to wages for hours not worked: 70% up to a cap of £2.187.50; employer contribution to wages for hours not worked: 10% up to a cap of £312.50.
- August - government contribution to wages for hours not worked: 60% up to a cap of £1,875; employer contribution to wages for hours not worked: 20% up to a cap of £625.
- September - government contribution to wages for hours not worked: 60% up to a cap of £1,875; employer contribution to wages for hours not worked: 20% up to a cap of £625.
Employers must also still pay the employers’ NI and auto-enrolment pension contributions.
Furloughed employee will therefore continue to receive 80% of their usual wages, up to the cap of £2,500 per month, for the time they spend on furlough, but their wage payment is now partly funded by the employer. The CJRS is then due to come to an end on 30 September 2021.
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