deferring the increase to April 2023 has allowed for companies to prepare a little more than usual. Small businesses will also welcome the return to a small profi ts rate, which will remain at 19%. All in all, the Budget appears to have struck the


right balance between critical business support and incentives to encourage businesses to boost the economy through increased activity and investment in innovation.


Scheme extended During the Budget, the Chancellor announced the Coronavirus Job Retention Scheme (CJRS) was to be extended until September 30, 2021. T e Government has released guidance for extended CJRS, and further updates will undoubtedly be issued as the roadmap progresses. There is no change for employees, who will


continue to receive 80% of their wages, subject to the cap. It is, however, important to note that the scheme will not operate in the same way from July, when employers must make contributions to employees’ pay. T e overall furlough payment will continue at 80%; with the option for employers to top up employees’ pay. However, from July 1, 2021, employers will contribute 10% and 70% will be paid by the government through the furlough grant, and from August 1 the employer contribution will rise to 20% with 60% being paid by the Government through the furlough grant.


Employees may be placed on full furlough or fl exible furlough and


employers can agree working arrangements with the employees as previously in the CJRS. Flexible furlough arrangements may continue, this is where employees work some hours. Alternatively, full furlough may apply. Employees can be on any type of employment contract. Employees


who are shielding or need to stay at home with someone who is shielding can be furloughed unless they can work from home. HMRC guidance outlines that employers can, not must, furlough


employees if they are aff ected by coronavirus or any other conditions. Other conditions refer to if the employee is unable to work from home or are working reduced hours because: - T e employee is clinically extremely vulnerable or at the highest risk of severe illness from coronavirus and following public health advice. - Has caring responsibilities resulting from coronavirus. T erefore, parents and guardians who are caring for children who are at home as a result of school and childcare facilities closing or caring for vulnerable people in their household.


Employers must continue to pay National Insurance and pension contributions. T e offi cial guidance states businesses will need to: - designate aff ected employees as ‘furloughed workers’, agree and notify employees in writing of this change - changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation. - submit information to HMRC about the employees that have been furloughed and their earnings through the online portal.


For a copy of our FAQs get in touch with Bedfordshire Chamber of Commerce on 01582 522448 or email info@chamber-business.com


ALL THINGS BUSINESS


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