Insights – August 2021
Furlo. Furlock. Furlong. Furlough.
It has gone by many names. But in 30 days’ time it will be gone for good.
One of the most financially generous grant supports in living memory, the Coronavirus Job Retention scheme has been a life saver to many businesses across the UK in its 16 month life. Never before have businesses seen employee wages being covered up to 80% or £2,500 per month – and for almost a year and a half.
As its 30 September 2021 expiry date looms, the burning question is: “will the end of the scheme bring a tsunami of redundancies?” Earlier this month, the Department for the Economy reported that approximately 44,000 employees in Northern Ireland remained on the scheme at the end of July 2021, split almost evenly between those on full-time furlough and those on flexi furlough.
In this month’s Insights, we share with you some last-minute pointers on the Coronavirus Job Retention Scheme and what actions you may need to take:
1.When can I submit my August claim?
Claims for the August pay month can be submitted now – the deadline for submissions is 14th September 2021. The level of support in September is 60%, meaning that employers will be funding 20% of wages to bring the employee payment up to 80% in line with the scheme (up to a maximum of £2,500).
2. What should I do if I have overclaimed from the scheme?
If you have overclaimed and you are making a claim for August, you should offset the overclaimed sum against the August claim due.
If you are no longer participating in the scheme, you need to notify HMRC and make an immediate repayment online by BACS or by card. If you do not repay the amount overclaimed within 90 days, you may be charged interest and penalties may accrue.
3. I overlooked making my claim a few months back. Can I claim now?
Unfortunately, no. The deadline for July 2021 claims is 31 August 2021. Any claims for previous periods are now out of date.
4. I am financially unable to retain my employee(s) when furlough ends. What do I need to do?
You must seek specialist HR advice immediately.
Dependent on the length of time your employee(s) has been with you, the numbers of employees affected and the nature and terms of their employment contract, there are important considerations in relation to consultation, notice, redundancy and holiday pay.
Be sure to seek specialist advice and follow the advice carefully so as to avoid any nasty surprises before an Industrial Tribunal in a few months’ time.
5. Furlough has propped up my business over the past 16 months. What are my options when it ends?
Again, you need to seek specialist advice.
There are several informal and formal business restructuring routes available – the key is to seek proper advice and act promptly on that advice. Our Business Restructuring team have many years’ experience in providing businesses with sound and compassionate advice.
Speak to our team today if you or someone you know needs help.
Should you have any queries on any of the above, please do not hesitate to contact us on 028 8772 4697 or at firstname.lastname@example.org.
Gildernew & Co. Ltd make every effort to ensure the accuracy of the information herein. However, no reliance should be placed on any of the above without seeking independent professional accountancy, legal and/or financial advice.
Posted on August 31, 2021