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The furlough scheme, which was previously due to end at the end of April 2021, was recently extended up until the end of September 2021. However, there are some changes taking place from July 2021 which you should be aware of. 

Up until the end of June, the government will continue to pay 80% of the employees’ usual wages for the hours not worked. 
For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875. Employers will need to still top up to 80% of employees’ usual wages or up to the cap of £2500 until the furlough scheme ends. 
The below table outlines the monthly changes up to the end of September 2021: -
Period Furlough Claim Furlough Cap Employer Top Up
Up to end of June 21 80% usual wages £2500 0%
July 2021 70% usual wages £2187.50 10% OR up to £2500
August 2021 60% usual wages £1875 20% OR up to £2500
September 2021 60% usual wages £1875 20% OR up to £2500
Eligibility
For periods from 1 May 2021 onwards, employers will be able to claim for eligible employees who were on employers’ PAYE payrolls and submitted to HMRC between 20th March 2020 and 2 March 2021.

Up until the end of June, the government will continue to pay 80% of the employees’ usual wages for the hours not worked. 

For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875. Employers will need to still top up to 80% of employees’ usual wages or up to the cap of £2500 until the furlough scheme ends. 

The below table outlines the monthly changes up to the end of September 2021: -

Period   Furlough Claim   Furough Cap   Employer Top Up  
Up to end of June 21   80% usual wages   £2,500 0%
July 2021 70% usual wages £2,187.50 10% OR up to £2500  
August 2021 60% usual wages £1,875 20% OR up to £2500
September 2021 60% usual wages £1,875 20% OR up to £2500

 

Eligibility: for periods from 1 May 2021 onwards, employers will be able to claim for eligible employees who were on employers’ PAYE payrolls and submitted to HMRC between 20th March 2020 and 2 March 2021.

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