Furlough scheme extended

Some potentially good news for employers is the Chancellor’s decision to extend the furlough scheme in its current form until 30 June 2021. Employers can continue to claim 80% of each furloughed employee's usual wages for periods the employee is furloughed, up to £2,500 per employee per month.


Furlough scheme extended

Some potentially good news for employers is the Chancellor’s decision to extend the furlough scheme in its current form until 30 June 2021. Employers can continue to claim 80% of each furloughed employee's usual wages for periods the employee is furloughed, up to £2,500 per employee per month.

The furlough scheme will continue until 30 September 2021 but the costs for employers will increase:

  • for pay periods from 1 July 2021 the employer can claim 70% of their employees' usual wages up to £2,187.50 per employee per month; and
  • for pay periods from 1 August 2021 the employer can claim 60% of their employees' usual wages up to £1,875 per employee per month.

In all cases the employer must continue to pay furloughed staff 80% of their usual contracted wages and pay all of the employer’s Class 1 NIC and any employer's pension contributions due on those furloughed wages.

Employees can be asked to work part time and be furloughed for the rest of their normal working hours.

Be aware that HMRC now publishes the names of employers who use the furlough scheme and an indication of the total amount claimed each month. Employees can also check their personal tax account to see if a furlough claim has been made in respect of their wages.


Last updated: April 29th 2021.

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