Coronavirus Job Retention Scheme extended to 31 October 2020

Today Chancellor Rishi Sunak announced that the Job Retention Scheme (JRS), a lifeline for an estimated 7.5 million employees across the UK, has been extended from 30 June 2020 to 31 October 2020.

This is welcome news for almost one million businesses across the UK who have relied on the scheme to pay salaries, retain their staff and keep their businesses going in these very challenging times. At Johnston Carmichael, our dedicated JRS team have been working hard to help over 300 businesses submit their JRS claims accurately and promptly.

Measures to make the scheme more flexible

While there will be no changes to the existing scheme until 31 July 2020, the Chancellor also announced measures to make the scheme more flexible over the coming months, to help ease people back into the workplace. Therefore, from 1 August 2020, furloughed employees will be able to return to work on a part-time basis and from that date employers will be asked to contribute to the cost of paying their furloughed employees’ wages although details have not been released yet about how much the employer contribution will be. For the duration of the scheme, employees will continue to receive 80% of their current salary, up to £2,500.

Full details of the additional measures will be published at the end of May and we will keep you informed on the further details as they emerge.

Given it is likely that most businesses will continue to access much needed cash flow by continuing to make a JRS claim in the months ahead, it is very important that you ensure your claims are properly prepared in accordance with the rules.

The importance of cash flow forecasting 

As we are now into week eight of the lockdown with much uncertainty remaining about when we will be able to circulate in a way which will allow the economy to reboot in any meaningful way, it is more important than ever that you closely monitor your cash flows by preparing weekly updates of your 13 week cash flow forecast and that you continue to access as many of the Government support measures as possible.

Here to help

We remain on hand to help advise you through these most testing of times and please also look at the array of tools and advice we have available to support you through our dedicated Coronavirus Hub.

In the meantime, if you have any questions , please do not hesitate to get in touch with your usual Johnston Carmichael adviser. We’re here to support you through this challenging time.