According to the changes to the Furlough scheme coming into effect on the 1st of July 2021, employers will now have to contribute towards the 80% of the furloughed employees’ wages. This change will affect thousands of employers across the UK.
Under the new rules, employees will continue to receive 80% of their wages up to a cap of £2500 per month, but employers will have to contribute by 10% (£312.50), whilst the Government will continue to pay the remaining 70% (£2,187.50)
From the 1st of August, employer contributions will rise to 20% (£625.00), while the Government’s contribution falls to 60% (£1,875) before the scheme ends on the 30th of September 2021.
Making a Furlough Claim as an Employer
To make a furlough claim, you will need:
- To be registered for PAYE online – you will need Government Gateway user ID and password to make a claim, so keep these safe.
- Your UK, Channel Island, or Isle of Man bank account number and sort code (only provide bank account details where a BACS payment can be accepted)
- The billing address on your bank account (this is the address on your bank statements)
- Your employer PAYE scheme reference number
- The number of employees being furloughed
- Each employee’s National Insurance Number
- Each employee’s payroll or employee number (optional)
- The start date and end date of the claim
- The full amounts of employee wages you’re claiming for
- Your phone number
- Contact name
When to Make a Furlough Claim as an Employer
You can claim before, during, or after you process your payroll, as long as your claim is submitted by the relevant claim deadline. You cannot submit your claim more than 14 days before your claim period end date.
When making your claim, you:
- do not have to wait until the end date of the claim period for a previous claim before making your next claim
- can make your claim more than 14 days in advance of the pay date (for example, if you pay your employee in arrears)
If you do not finish your claim in one session, you can save a draft. You must complete your claim within 7 days of starting it.
Claims must be submitted by 11:59 pm 14 calendar days after the start of the month you’re claiming for. If this deadline falls on the weekend or a bank holiday, then claims should be submitted on the next working day.
Monthly Deadlines to Claim Furlough
Furlough Month Claim must be submitted by
July 2021 16th August 2021
August 2021 14th September 2021
September 2021 14th October 2021
Payroll Services at ARB Accountants
ARB Accountants offer payroll services in Essex and throughout the whole of the UK. We can help you navigate the administrative and legislative demands of payroll, and stay compliant with the latest regulations. If you are in need of information or help with completing Furlough Claims, please contact us on 01702 345 207 or email us at info@arb.accountants and we will be happy to assist.