As we move into October, we also move into the final month of the Job Retention Scheme. Since March, the government has helped to pay the wages of 9.6 million people working for 1.16 million employers which equates to 32% of the UK workforce.
Over the recent months there has been a reduction in the amount employers can claim for furloughed employees including the introduction of flexible furlough and in October the employer claim reduces to its final level. As such, employers must pick up all employer costs including National Insurance and Pensions but also make up 20% of the 80% of income (or £2500 whichever the lower) payable to the employee for their furloughed time in October. Remember, even though the claimable amount has reduced, the furloughed employee must still receive all of the full 80% or equivalent amount which is taxable and NIable.
All claims for the Job Retention Scheme must be made by the 30th of November after which date no further claims or additions will be accepted.
From the 1st of November, the Job Retention Scheme will be replaced with the Job Support Scheme and details and guidance should be available in the next couple of weeks.
