The Furlough Scheme (CJRS – Coronavirus Job Retention Scheme) was, unsurprisingly, extended in a government announcement yesterday (Friday 17 April).
Originally set to run until 31 May, it has been extended to 30 June. The government has said it will be extended further “if necessary”.
The reason for the extension was because yesterday was the day on which larger companies would need to start the redundancy process in order to complete it before 31 May. Redundancy for larger companies requires a 45 day consultation and notice period. Clearly, the government doesn’t want a massive influx of workers claiming benefits. The Benefits Office would simply not cope.
At 7:40pm yesterday evening (Friday, 17 April), HMRC sent out an email with links to documents supposedly clarifying the calculation of furlough pay. Since the scheme has been in operation for a month, some clarification is welcome – if about four weeks late!
However, because there hasn’t been a clear way of calculating furlough pay until now, there are several versions of the calculation being used. The new information might result in a more consistent approach. Then again, it may not. There are still some areas which are unclear and, in some cases, they say earlier assumptions can continue to be made, so variations are still possible.
For anyone who wishes to read the full information released, the two announcements are here:
The portal opens for claims on Monday, 20 April. There is no doubt that it will be swamped on that day. We will check calculations against the new guidance. This may result in some adjustments to previously calculated pay (although, hopefully not much) and then attempt to log on and make claims where we have authority to do so.
We will have several staff carrying out these tasks, but cannot guarantee that all claims will be made during the first few days. Please bear with us.
The process will need to be repeated in subsequent months for as long as the scheme is in operation.
If you haven’t already done so, you might like to check out some of our earlier articles on this topic:
We will provide help and support where needed on all matters but please be patient. We are going to be extremely busy.
Our existing clients will always be prioritised but we don’t want to see any business suffer. Even if you are not one of our clients, we will try to help. Getting help now might preserve a business and the associated jobs.
We have had enquiries from business owners who are having difficulty contacting their own accountant. We have also had discussions with other accountants and bookkeepers to reassure all parties that the interpretation is correct.
The usual contact methods are:
Telephone –(01509) 816150
Email – firstname.lastname@example.org
Webform – below