Furlough update: HMRC issues new guidance to help Britons as scheme winds down
Furlough, otherwise known as the Coronavirus Job Retention Scheme, has provided millions of people with support throughout the pandemic. However, the scheme is set to draw to a close, finishing in September as part of the Government’s plans to “unlock” the country. Before the scheme ends, however, it is being slowly phased out, with businesses required to take on additional responsibilities.
For those who are furloughed themselves, or individuals responsible for furloughing others, understanding the new rules under the scheme will be important.
Some have expressed confusion about the kind of responsibilities they may have to take on, or what the changes will mean for them personally.
To clarify the matter, HMRC has issued new guidance as it relates to the scheme through a pre-recorded webinar.
Some 48 minutes long, the video explains in detail the key elements of furlough and what is to happen next.
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Ultimately, though, the amount someone receives while on furlough should not change, simply where the money is coming from.
However, this is not the end of alterations to the scheme which are set to be implemented by the Government.
From August onwards, the level of Government support will once again decrease in preparation for the scheme’s end.
In August and September, the Government contribution will be 60 percent of a furloughed person’s salary up to £1,875.
This means employers will have to cover 20 percent of salaries up to £625, alongside pension and NI contributions.
Some experts, however, are fearful about what the end of furlough could mean for Britons.
It has been suggested there could be a jobs crisis looming, as businesses struggle to keep up with financial responsibilities of furlough.
Concerns are that some people could be made redundant following the schemes end, leaving them financial unstable.
This may also lead to another surge in Universal Credit claims from the Department for Work and Pensions (DWP).
For those who have missed the webinar on furlough, however, it is not the end of assistance which can be gained.
The webinar is being offered once again to those who have missed it in the past.
The key date to bear in mind is Monday July 19, 2021 at 11.45am to 12.45pm.
Registrations are now open through the Government’s official website for those who are hoping to sign up.
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