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Furlough scheme
 

Due to the surge of Coronavirus, the Chancellor of the Exchequer Rishi Sunak has approved a further continuation of the Coronavirus Job Retention Scheme (CJRS), the Government-backed loans to the end of March and furlough scheme until the end of April 2021 to back UK businesses as restrictions remain.

The Chancellor said – “We know the premium businesses place on certainty, so it is right that we enable businesses to plan regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our Plan for Jobs.”

Following this extension, employees or workers will get their payments without any barrier, which will be equal to 80 per of their salary. 

Employers still have to pay wages, NICS, and pensions for hours worked and NICS and pensions for hours not worked.

The qualification standards for the UK-wide furlough scheme will stay the same and these changes will keep on applying to all Devolved Administrations. The extension of this scheme until April 2021 implies organizations all over the nation will have sureness about what aid will be accessible to them.

Coronavirus Business Loans

The Government has confirmed that Coronavirus business loan schemes are also going to be extended until March-end. This covers the three main emergency loans, Coronavirus Business Interruption Loan Scheme, Bounce Back Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme. 

CFN chairman and accountant-in-residence at Capitalise Kirsty McGregor told AccountingWEB:

“We know in the accounting profession that January is always a busy month so we have been encouraging all advisers to contact their eligible clients to consider whether they wish to take advantage of such a facility whilst these extremely attractive terms still exist,”

Moving forward it has additionally been affirmed that the Budget will come on the 3 March 2021 where the Government will set out the following period of the arrangement to handle the Covid-19 virus and secure job positions.

 

Also Read: How furloughed employees and sick leaves are affecting accounting practices

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