Wednesday, March 23, 2022 Julie Rimmer

Chancellor of the Exchequer Rishi Sunak has delivered the Spring Statement to the House of Commons today. The full document can be read here:

https://www.gov.uk/government/publications/spring-statement-2022-documents

Wednesday, August 04, 2021 Julie Rimmer

The government’s Coronavirus Job Retention Scheme (CJRS) begins winding down from 1 July.

The latest data from the Institute for Fiscal Studies (IFS) shows that at the end of April 3.4 million jobs were still on furlough so the change to the furlough scheme will affect thousands of employers across the country.

Since last March, the government has paid 80% of the salaries of employees (up to a maximum government contribution of £2,500 per month) – with the employers only having to pay employer National Insurance and pension contributions.

From 1 July the government will only pay 70% of the furloughed employee’s salary, so the employer has to pay 10% of the salary themselves. In August and September, employers will have to pay 20%, with the government picking up 60%. Furloughed employees will continue to receive 80% of their wages including the employer contribution.

However, according to the IFS, the bill for employers keeping a member of staff on the scheme will rise significantly, putting jobs at risk. For a furloughed employee previously earning £20,000 per year, the cost to an employer of keeping them will rise from £155 per month in June to £322 in July, and £489 per month in August and September, after which the scheme is due to end.

Further details of changes to the CJRS can be found at GOV.UK CJRS.

Wednesday, July 14, 2021 Adele Greenly

HMRC has launched nearly 13,000 investigations into alleged abuse of the government’s coronavirus (COVID-19) financial support schemes.

A freedom of information request revealed that, up to the end of March 2021, HMRC opened 12,828 investigations into alleged cases of fraud. 7,384 of these investigations related to abuse of the COVID-19 support schemes.

5,020 investigations were launched into the alleged misuse of the Self-employment Income Support Scheme (SEISS).

Commenting on the matter, a spokesperson for HMRC said:

‘It is vital we support businesses to recover by ensuring a level playing field, so the majority are not undercut by the few who tried to cheat the system.

‘We are taking tough action to tackle fraudulent behaviour. We have now opened more than 12,000 inquiries into claimants we suspect may have kept more than they were entitled to. We have also begun a handful of criminal investigations.’

Internet link: CityAM news

Monday, July 05, 2021 Adele Greenly

The latest data from the Institute for Fiscal Studies (IFS) shows that at the end of April 3.4 million jobs were still on furlough so the change to the furlough scheme will affect thousands of employers across the country.

Since last March, the government has paid 80% of the salaries of employees (up to a maximum government contribution of £2,500 per month) – with the employers only having to pay employer National Insurance and pension contributions.

From 1 July the government will only pay 70% of the furloughed employee’s salary, so the employer has to pay 10% of the salary themselves. In August and September, employers will have to pay 20%, with the government picking up 60%. Furloughed employees will continue to receive 80% of their wages including the employer contribution.

However, according to the IFS, the bill for employers keeping a member of staff on the scheme will rise significantly, putting jobs at risk. For a furloughed employee previously earning £20,000 per year, the cost to an employer of keeping them will rise from £155 per month in June to £322 in July, and £489 per month in August and September, after which the scheme is due to end.

Further details of changes to the CJRS can be found at GOV.UK CJRS.