Furlough Scheme updates
During the initial lockdown period (impacting the wider
geographical area of Scotland, England and Wales) we were able to provide
Furlough payments to our employees that were affected, incrementally,
month-ending April, May, June and July. We were able to accommodate the CJRS scheme during this period as the Government incurred all associated costs concerning any PAYE payments under the furlough banner.
From August 2020, the percentage of government subsidy provided
via CJRS began a gradual declining taper, employers became responsible for higher costs on any furlough payment made. Due to the necessary contractual arrangements between any umbrella company and the contractual supply chain, the umbrella company was no longer in a position to claim support funds for contract-based employees. As a result, Umbrella Contracts was unable to continue processing Furlough payments – effective from August 2020. You will have received an email from us at this time explaining that we were no longer able to make furlough payments.
In relation to the new furlough parameters – per the Government website (Gov.uk), “The CJRS is being extended until April 2021. The level of the grant will mirror levels available under the CJRS in August” Thus, Umbrella Contracts is once again unable to process CJRS payments without trading at a direct loss.
Had the Chancellor announced a more robust furlough platform akin to that in place April-July 2020 we would, of course, be in a position to make necessary CJRS payments to any of our eligible contractors.
For more information, please go to https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme