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From sunday 1 november the job retention scheme will no longer exist and is being replaced by.
Self employed tax form 2020. However hm treasury will now extend the furlough scheme until december when it will be replaced by the job support scheme. How does the new furlough scheme work. Employers must now contribute 10 to furloughed employees wages from the 1st september 2020 changes to the job retention scheme mean that employers will now have to contribute 10 of furloughed employees wages to the total 80 of which they are entitled.
That is for the hours that are not worked an employer can now claim for 80 of wages up to a cap of 2500 per month. This change comes as the governments move to wind down the scheme begins. The job support scheme has been postponed as the government is extending its furlough scheme throughout lockdown.
Employers must pay national insurance and pension contributions for these hours. When it first launched back in march the government covered up to 80 of staff salaries plus their. Under the terms of the extension the government will pay 80 of a workers salary while the employer will have to meet the cost of national insurance payments and pension contributions.
The number of people on furlough has fallen from a peak in may of 9 million to about 3 million in september. At the moment the furlough scheme is expected to come to an end in december. Firms will pay workers for hours they work.
Furlough scheme will be replaced with a job support scheme jss to directly support wages of staff working at least a third of regular hours. The level of the grant that can be claimed is reverting to that available in august 2020. Furlough has been a lifeline for workers and businesses during lockdown enabling staff to be kept on with wages topped up by the government.
How will the extended furlough scheme work. So far the furlough scheme has cost the exchequer almost 40bn since its launch in march.
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