Content coming soon.
Content coming soon.
The government has extended the Coronavirus Job Retention Scheme to 31 October 2020 and announced the introduction of part time furlough flexibility from 1 July 2020.
From 1 July 2020 onwards, furloughed workers will be able to return to work part-time with employers asked to pay a percentage towards the salaries of their furloughed staff.
The Chancellor also confirmed that part-time working will only be permitted for employers “currently using” the scheme.
More specific details around the implementation of the new phase of the scheme will be made available by the end of May.
Small businesses will be eligible for new loans worth up to £50,000 backed by a 100 per cent government guarantee.
Businesses can apply for a minimum of £2,000 up to a maximum of £50,000, or 25% of business turnover, with the government paying the interest for the first 12 months.
No repayments will be due during the first 12 months.
They can apply from the existing network of accredited lenders using a two-page standard online form with no forward-looking business viability tests or eligibility criteria.
The scheme will open from 9am on Monday 4 May 2020, and according to the Chancellor, most loans will be paid within 24 hours of approval.
Please click on the link below for the Government press release on the scheme:
The government has extended the start date for eligibility for furlough to 19 March from the original date of 28 February 2020.
More employees will therefore be able to receive support through the Coronavirus Job Retention Scheme as a result.
The government also confirmed that the scheme is expected to be fully operational next week with the online portal due to go live on 20 April to allow businesses to start filing their returns.
To qualify and to protect against fraudulent claims, individuals originally had to be employed on 28 February 2020.
However, following a review of the delivery system and to ensure the scheme helps as many people as possible, new guidance published today has confirmed the eligibility date has been extended to 19 March 2020 (the day before the scheme was announced).
Employers can claim for furloughed employees that were employed and on their PAYE payroll on or before 19 March 2020.
This means that the employee must have been notified to HMRC through an RTI submission notifying payment in respect of that employee on or before 19 March 2020.
For loans over £250,000, personal guarantees will be limited to just 20% of any amount outstanding on the CBILS lending after any other recoveries from business assets.
Lenders were already prohibited from asking business owners to put their house on the line, but today’s changes will provide further reassurance regarding personal assets during this difficult time.
Anyone considering a loan under the scheme should go to their existing bank’s website for details of how to apply as each bank has its own lending criteria.
The government update on the scheme can be found via the link below:Close