google-site-verification: google2c3d1a1e44131ecc.html

Preparing for the End of Furlough

12 May 2021 | Rebecca Foley

In the 2021 Spring Budget, Rishi Sunak announced that the Coronavirus Job Retention Scheme, otherwise known as the Furlough Scheme, would be extended from 30 April 2021 to 30 September 2021.

As the scheme winds down, employers will need to contribute to furlough pay:

  • From 1st July 2021 employers contribute 10% of the furlough pay
  • From 1st August 2021 employers contribute 20% of the furlough pay

To help businesses prepare for the end of the scheme, we’ve put together a comprehensive timeline that details the key action dates regarding the scheme as well as other lockdown reopening dates.

End of Furlough Timeline

 

End of Furlough Timeline for Employers

May

1st May

New Joiners who started work between 31st October, 2021 and 2nd March, 2021 may enter May, 2021 period of firlough scheme. (Employees who were employed after 2nd March, 2021 are not eligble for the scheme.)

16th May (Sunday)

If making 100+ redundancies by 30th June (before employer contributions to furlough pay increase), today is the last day to start collective redundancy consultation.

17th May

Reopening of indoor hospitality (earliest date).

31st May

If making between 20-99 redundancies by 30th June (before employer contributions to furlough pay increase), today is the last day to start collective redundancy consultation.

 

June

21st June

Reopening of ALL remaining businesses (earliest date).

 

July

1st July

Employers now become repsonsible for contributing 10% of employers furlough pay (up to a maximum of £312.50 per employee per month).

 

August

1st August

Employers now become responsible for contributing 20% of employees furlough pay (up to a maximum of £625 per employee per month).

31st August

If making between 20 – 99 redundancies by 30th September (end of furlough scheme), today is the last day to start collective redundancy consultation.

 

Septemeber

30th September

Furlough scheeme ends.

Disclaimer

Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

Circular 230 disclosure

To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

The author

Rebecca Foley
Head of Marketing
Marketing
Business Development
Brand Management
D: 0207 036 8383
T: 0203 051 5711
F: 0203 051 5712

Also by the author

4 March 2021
UK Budget 2021: Key Takeaways for HR Practitioners
18 November 2020
Abbiss Cadres Identified by The Times as one of the Best Law Firms in the UK 2021
27 February 2020
Abbiss Cadres expands integrated tax services with Senior Consultant addition
Subscribe to our newsletter
Stay up to the minute on our latest news and insights?