The Coronavirus Job Retention scheme has come to an end today, 30th September 2021 and claims for September must be submitted by 14 October 2021. Amendments must be made by 28 October 2021.
The scheme supported businesses across the UK and protected millions of jobs during the pandemic, but where do we stand now it has ended?
Well we’ve come a long way from our original rigid operating procedures back when many of us didn’t even know what furlough was. And, although there have been many necessary changes implemented to protect staff and consumers, we are better equipped to deal with future potential challenges to business continuity.
What happens now that it's over?
Most employees will go back to their pre-furlough jobs and salaries will return to normal. No matter how small your business may be, it is a good idea to clearly communicate when you expect staff to return to work. Whether they will be working from home, back to the office or a mix of the two they will need to understand your expectations for their routines.
It’s also a good opportunity to put out the message to ‘pull together’ so that the business as a whole is motivated into a productive start back to work.
Is there anything else I should know?
You must include payments you’ve received under the scheme as income when you calculate your taxable profits for Income Tax and Corporation Tax purposes, as they were to offset the deductible revenue costs of your employees.
What if I can’t afford to keep people on?
A downturn in business during the pandemic may mean that many businesses simply cannot afford to return to paying the recent 60% of salaries covered by the government. In this case you may need to review your current position with your accountant and potentially consider making redundancies or if possible find other ways to reduce overheads and business expenses.
If termination or a change to terms and conditions of employment are your only options you will need to start the process as soon as possible due to the many necessary steps to consider and actions to take when going this route.
You can view the redundancy overview on Gov.uk here: https://www.gov.uk/staff-redundant
If you don’t know where to start or you need advice on how your business should proceed, we can help.
The HR Dept is also now part of the Blue Rocket Group, and with a wealth of experience in all human resources and employment law matters, they can help. From employee contracts and handbooks to redundancies and employment tribunals.
Get in touch with us today for a no obligation chat and find out how we can help advise you on your next steps by calling us on +44 1322555442 or email us at happytohelp@bluerocketaccounting.com
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