How are you preparing for the end of furlough?
The Coronavirus Job Retention Scheme (CJRS), which has helped to keep millions of people employed throughout the pandemic, is winding down. As previously announced, it’s expected to be completely phased out by the end of September.
This month (July), employers were asked to contribute 10% of furloughed employees’ wages, up to £312.50 per month, in addition to National Insurance and pension payments. This contribution will increase in the coming months seeing employers paying 20% and the government subsidising 60% for those on furlough.
HMRC is continuing to undertake an increased number of compliance interventions to combat the misuse of the CJRS, so if you’re planning on furloughing until the very end, take close attention to the changes.
With the scheme coming to an end, workforce planning is crucial. If you think that you may need to make redundancies, keep in mind that this process involves a legal time frame. Have you considered all of the alternatives?
Contact us if you’re unsure or need some advice.