Update to Coronavirus Job Retention Scheme and Coronavirus Large Business Interruption Loan
On Friday (29 May 2020) the Chancellor announced changes to the Coronavirus Job Retention Scheme, commonly known as the furlough scheme.
From August, employers will be expected to pay National Insurance and pensions contributions for their furloughed employee. The Government will continue to pay 80% of employees’ wages for the month of August, up to £2,500 per month. In September, employers will be asked to pay 10% of their furloughed employees’ wages with this rising to 20% for the month of October.
Throughout this period, furloughed employees will continue to receive 80% of their wages. Furthermore, employers will soon be able to use the furlough scheme more flexibly. From July 1, businesses can bring back employees part time while continuing to use the scheme. More information can be found on GOV.UK at: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme
In a further change to an existing government support scheme, on May 26 the amount of support available to businesses under the Coronavirus Large Business Interruption Loan Scheme was increased from £50 million to £200 million. The scheme is designed to help UK-based medium and large sized business with an annual turnover of over £45 million to access loans and other types of finance.
A lender can provide up to 25% of a company’s annual turnover. To date, 154 Coronavirus Large Business Interruption Loans have been approved worth over £820 million. More information can be found on GOV.UK at: https://www.gov.uk/guidance/apply-for-the-coronavirus-large-business-interruption-loan-scheme
Source: Department for Transport (DfT)