Changes to the Furlough Scheme for July 2021

Changes to the Furlough Scheme for July 2021

In our latest accounting and bookkeeping news article, we examine the recent changes being made to the Furlough scheme in the UK from July 2021, what is changing in the scheme and what it means for you and your business.

What’s Changing for Employers in The Furlough Scheme?

From 1st July 2021 the level of grant that can be received from the Furlough Scheme will be reduced.

Previously, employers have been able to claim 80% of employee’s wages (up to £2,500 per employee) each month and have only needed to contribute National Insurance and Pensions (if any).

However, from 1st July 2021 the amount you can claim has reduced to 70% (up to £2,187.50 per employee) and the employer must now contribute at least 10% (up to £312.50) of the employee’s monthly salary.

“Kieran has been invaluable since we first enquired about his services. He’s been able to sort out everything we’ve needed him to in timely fashion and is always very understanding, patient and responsive to our needs. Highly recommended if you’re looking for an accountant and bookkeeper.”

jack cunningham – LTD

The Future for the Furlough Scheme

Over the next few months, the Furlough scheme will keep reducing and is currently due to finish at the end of September 2021. This will mean that employers will need to start bringing back their workforce and will need to ensure they have the funds available to pay all staff.

If you’d like to get invaluable information on issues relating to tax and accounting then please follow us on Facebook, that’s where we’ll generally give our thoughts on issues such as Furlough and other changes to government legislation as well as other business accounting topics first.

Would you like Further Advice about the Furlough Scheme or General Accounting & Bookkeeping?

If you have any concerns about the changes in the Furlough Scheme or the scheme coming to an end, we’d be happy to help. We are experienced and qualified chartered accountants, who are able to help with a range of accountancy problems for businesses of all size. Get in touch with us on [email protected] or call us on 01237 478246.

We’re experts in LTD Company Accounting & bookkeeping and we serve the whole of the UK (excluding Northern Ireland), however, our key local services areas are Bideford, Barnstaple, Torrington, South Molton and the surrounding areas.