Garages to benefit from furlough scheme extension

Published:  18 April, 2020

Garages that have shut their doors due to COVID-19 will be able to access funding to pay staff for an additional month, following the government’s extension to the furlough deadline.

Announcing the extension of the Coronavirus Job Retention Scheme yesterday (Friday 17 April), Chancellor Rishi Sunak said the subsidy would now run until the end of June.

Through the programme, any business can access a grant to cover 80% of a worker’s salary up to a maximum of £2,500 a month. The scheme was originally set to run until 31 May, but will now run until 30 June.

The scheme could be extended again the Chancellor said, if necessary. He observed: “With the extension of the coronavirus lockdown measures yesterday, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity.”

He added: "It is vital for people's livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery."

This was not the only change to the scheme seen this week. A few days ago, the cut-off date for eligibility was extended to 19 March, meaning staff employed before that date would be eligible. Under the original rules, staff needed to have been employed prior to 28 February to qualify. Now, employers can claim for furloughed employees that were employed and on their PAYE payroll on or before 19 March. This means that the employee must have been notified to HMRC through an RTI submission notifying payment in respect of that employee on or before 19 March.

If any employer now thinks they are eligible for support, they can find out here: www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

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