Further extension to furlough and loan schemes

The Chancellor, Rishi Sunak, has announced that the Coronavirus Job Retention Scheme (CJRS) will be extended by one month, until the end of April 2021.

The criteria will remain unchanged, following the same guidelines that are currently in place with the government continuing to pay 80% of unworked hours for furloughed employees, up to £2,500 per month.

Along with the extension of the CJRS, the Chancellor also announced that all the government-backed loans will be extended until the end of March 2021. This will include the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, Coronavirus Large Business Interruption Loan Scheme and the Future Fund.

The Chancellor hopes these measures will provide certainty and clarity, ensuring firms have access to the support they need through the continuing economic disruption caused by the pandemic.

Furthermore, the date for the next Budget was confirmed as Wednesday 3 March 2021. The government already announced that more support will be available beyond March, through a successor scheme and the Budget will provide a further update on a wider economic support package.

HMRC hope that by extending the CJRS until the end of April, ahead of the 45 day redundancy notice period and with the Budget setting out the next phase of support more than 45 days before the new end date of the scheme, it will give businesses certainty and access to support, protecting jobs as we head into the New Year.

For support with the CJRS, loan applications or to discuss what changes we expect in the Budget and how best to prepare for them, please get in touch with our team by calling one of our offices or email info@eqcccountants.co.uk.