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Employers will need to start contributing to work not done by furloughed employees from 1 July 2021. 
The update from HMRC is reproduced below: 
 
From 1 July 2021, the level of grant will be reduced, and you will be asked to contribute towards the cost of your furloughed employees’ wages. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough. 
 
The table below shows the level of government contribution available in the coming months, the required employer contribution and the amount that the employee receives per month where the employee is furloughed 100% of the time. 
 
Wage caps are proportional to the hours not worked. 
 
Click on this text to edit it. 
You can continue to choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense. 
If you still have employees on furlough now would be a good time to engage in a formal planning process to work out how your business will manage the transition back to you covering all wage costs from 1 October 2021. 
 
Realistically, this should involve preparing a business forecast for at least the next twelve months. 
 
We can help 
 
Let us help you prepare the necessary forecasts and consider your options. 
Tagged as: Furlough
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