Following Rishi Sunak’s update on the furlough scheme yesterday, please find a summary below.
- Scheme to set to end 31 October 2020
- Employees can return to work part-time from 1 July,however, employers must pay 100% of wages for hours worked
- From August 2020, employers must pay NI & Pension contributions, Government will cover 80% of pay, contribution capped at £2,500
- From September 2020, employers must contribute 10% of staff pay, Government will cover 70% of pay, contribution capped at £2,190
- From October 2020, employers must contribute 20% of staff pay, Government will cover 60% of pay, contribution capped at £1,875
Business owners and senior management teams should be updating their business plans and cashflow models on a weekly basis, reflecting the ever changing economic landscape. Timing of tax payments, loan repayments as well as phasing of staff costs all need to be factored in to business plans and cashflow forecasts.
Contact us today if you need assistance in cashflow planning, with a specific focus on the next 12 months.
t: 0333 050 9664