Government clarifies furlough scheme stance for employers

July 2020

Only employees who have been furloughed for at least three weeks on or before 30 June 2020 are eligible for the final phase of the scheme.

Employers had until 10 June 2020 to place any workers on the job retention scheme if they wanted to take advantage of it until 31 October 2020.

Jeremy Coker, president at the Association of Taxation Technicians, said:

“Unless an employee has been furloughed at some point between 1 March and 30 June 2020, for a minimum of three continuous weeks, it will not be possible to furlough them between 1 July and 31 October.

“Employers should be aware that from 1 July, the number of employees they can include on claims for periods from that date will be capped.

“The cap will be equal to the maximum number of employees previously claimed for in the first three months of the scheme.”

Since 1 March 2020, the Treasury has offered to cover up to 80% of the salaries of workers who were unable to do their jobs from home due to coronavirus.

More than a quarter of the UK’s entire workforce – 9.1 million employees – have been furloughed prior to the 10 June 2020 deadline and are therefore eligible for the final four months of the scheme.

Businesses do, however, have the flexibility to bring furloughed employees back part-time from 1 July 2020, a month earlier than previously announced.

Firms that opt to bring their employees back on a part-time basis will be responsible for paying their wages for the hours they work and can furlough them for the remaining hours.

From 1 August 2020, the support provided through the furlough scheme will be limited and employers’ contributions will rise, to reflect furloughed employees returning to work.

For September and October 2020, the Treasury will pay 70% and 60% of wages up to caps of £2,187.50 and £1,875, respectively.

Business as usual is set to resume from November, assuming the number of coronavirus cases in the UK continues to fall.

To read more about the scheme please see our Covid-19 Information Centre article on SEISS.

Speak to us about Covid-19 related support.
Business news
Finsbury Robinson

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare.

Contact Us

Sign up to our
Monthly Business Newsletter

Sign up to receive our monthly Business Newsletter that will keep you up to date with everything going on in accounting, tax, and finance. 

Finsbury Robinson Services
R&D Tax
Has your company undertaken
any R&D related activities?
Find OUt More
Affected by the
Let Property Campaign?
Find OUt More
Check out our fixed price
Accounting and Business Packages
Find OUt More
Free Book-keeping
Software for all Clients
Find OUt More
Free Auto Enrolment Pensions Advice
Calculate your Contribution!
Find OUt More
Are you aware of the Capital Gains Tax Changes coming?
GDPR Compliance
Find OUt More

Sign up to our Monthly Business Newsletter

Find News Articles by Category

News HomeCovid-19
Government clarifies furlough scheme stance for employers
To get in touch use our Quick Contact Bar:

Monday                 8:30AM – 5:30PM
Tuesday                8:30AM – 5:30PM
Wednesday          8:30AM – 5:30PM
Thursday              8:30AM – 5:30PM
Friday                 9:00AM – 12:30PM
Saturday                                 Closed
Sunday                                   Closed

Finsbury Robinson
237 Westcombe Hill