Businesses in UK told to start paying furlough bill from August

&Tab;&Tab;<div class&equals;"wpcnt">&NewLine;&Tab;&Tab;&Tab;<div class&equals;"wpa">&NewLine;&Tab;&Tab;&Tab;&Tab;<span class&equals;"wpa-about">Advertisements<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<div class&equals;"u top&lowbar;amp">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<amp-ad width&equals;"300" height&equals;"265"&NewLine;&Tab;&Tab; type&equals;"pubmine"&NewLine;&Tab;&Tab; data-siteid&equals;"111265417"&NewLine;&Tab;&Tab; data-section&equals;"2">&NewLine;&Tab;&Tab;<&sol;amp-ad>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;<&sol;div><p>A final self-employment coronavirus grant is to be made available and businesses must start paying towards the worker furlough scheme from August&comma; the British Government has announced&period;<&sol;p>&NewLine;<p>Freelancers will be able to claim up to £6&comma;570 &lpar;€7&comma;282&rpar; from that date&comma; giving those workers access to a total coronavirus grant of up to £14&comma;070 each&period;<&sol;p>&NewLine;<p>Businesses will also have to start paying National Insurance and tax contributions for staff in August&comma; ramping up to 10&percnt; of furloughed wages in September and 20&percnt; in October&period;<&sol;p>&NewLine;<p>Chancellor Rishi Sunak had previously announced the plan to get businesses to contribute to the Coronavirus Job Retention Scheme &lpar;CJRS&rpar;&comma; but he laid out further details on Friday&period;<&sol;p>&NewLine;<p>He also revealed that workers can return part-time without losing any furlough payments from July – a month earlier than previously planned&comma; following lobbying from businesses&period;<&sol;p>&NewLine;<p>But businesses must start bearing the costs and from August all companies using the furlough scheme must start paying National Insurance and employer pension contributions&period;<&sol;p>&NewLine;<p>In September and October contributions will rise to 10&percnt; and 20&percnt; respectively&comma; the Chancellor added&comma; but workers still furloughed will keep getting 80&percnt; of their wages up to £2&comma;500 &lpar;€2&comma;771&rpar; a month&period;<&sol;p>&NewLine;<p>The British Government will cover 70&percnt; of wages up to £2&comma;190 &lpar;€2&comma;427&rpar; in September&comma; with employers to pay National Insurance and pension contributions and 10&percnt; of wages&comma; representing 14&percnt; of the gross employment costs&period;<&sol;p>&NewLine;<p>The following month&comma; the UK Treasury will pick up 60&percnt; of wages up to a cap of £1&comma;875 &lpar;€2&comma;078&rpar;&comma; with employers paying tax contributions and 20&percnt; of wages&comma; representing 23&percnt; of the gross employment costs&comma; the Government said&period;<&sol;p>&NewLine;<p>It added that only 40&percnt; of businesses had claimed the pension contributions since the scheme was launched&period;<&sol;p>&NewLine;<p>Officials added that companies can be flexible with their definition of &OpenCurlyDoubleQuote;part-time” as long as a full-time employee has not returned to normal hours&period;<&sol;p>&NewLine;<p>The Treasury said&colon; &OpenCurlyDoubleQuote;Individual firms will decide the hours and shift patterns their employees will work on their return&comma; so that they can decide on the best approach for them – and will be responsible for paying their wages while in work&period;”<&sol;p>&NewLine;<p>Since it was launched&comma; the CJRS has been used by one million businesses to support 8&period;5 million jobs&comma; at a cost of £15 billion &lpar;€16&period;6bn&rpar; so far&period;<&sol;p>&NewLine;<p>The scheme is expected to cost a total of around £80 billion &lpar;€88&period;7bn&rpar;&comma; or £10 billion &lpar;€11&period;08bn&rpar; a month&comma; although the Office for Budget Responsibility is set to publish detailed costs next week&period;<&sol;p>&NewLine;<p>Business groups had asked the UK Government to ensure that those industries suffering hardest were most protected&period;<&sol;p>&NewLine;<p>But the Treasury said it was not always clear which sector a business was in&comma; insisting it would not rule out future support if required&period;<&sol;p>&NewLine;<p>Mr Sunak said&colon; &OpenCurlyDoubleQuote;Now&comma; as we begin to reopen our country and kick-start our economy&comma; these schemes will adjust to ensure those who are able to work can do so&comma; while remaining amongst the most generous in the world&period;”<&sol;p>&NewLine;<p>The Chancellor had faced calls&comma; including from a cross-party group of 113 MPs&comma; to extend the scheme for self-employed workers&comma; which has so far seen 2&period;3 million claims worth £6&period;8 billion &lpar;€7&period;5bn&rpar;&period;<&sol;p>&NewLine;<p>The grant will be worth 70&percnt; of their average monthly trading profits&comma; paid out in a single instalment covering three months’ worth of profits&comma; and capped at £6&comma;570 &lpar;€7&comma;282&rpar; in total&period;<&sol;p>&NewLine;<p>To combat fraud&comma; employees will be able to report any concerns to HM Revenue and Customs&period;<&sol;p>&NewLine;&Tab;&Tab;&Tab;<div style&equals;"padding-bottom&colon;15px&semi;" class&equals;"wordads-tag" data-slot-type&equals;"belowpost">&NewLine;&Tab;&Tab;&Tab;&Tab;<div id&equals;"atatags-dynamic-belowpost-68ed7bc45687d">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<script type&equals;"text&sol;javascript">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback &equals; 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