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Furlough Extension: Key Features

The Government’s extension of the Coronavirus Job Retention scheme reflects the acceptance that we still have a way to go before a return to economic normality, but also the Treasury’s pressing need to deliver support on a budget. Here are the key features:

  • The scheme operates from 1 November 2020 until 31 March 2021.
  • The Coronavirus Job Retention Bonus has been withdrawn.
  • The level of the grant has returned to 80% of basic salary on unworked hours up to the limit of £2,500 per month. This is the same level of support offered in August before it reduced in September and October.
  • Employers still need to cover NI and pension contributions on the salary paid to the employee
  • Neither the employer nor the employee needs to have used the furlough scheme before November 2020 to be eligible. The employee must have been employed on 30 October 2020.
  • Claims cannot be made for any day that an employee is serving notice (both contractual and statutory) between 1 December 2020 and 31 January 2021. This is a change from the previous scheme.
  • Furlough agreements must be in place before the start of the relevant claim period.
  • From December 2020 HMRC plans to publish the name and company registration number of employers who have made claims under the schemes.

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