Are you prepared?
So, as the pandemic starts to come to an end (of sorts), restrictions ease and economic activity is expected to resume to more normal levels - it is inevitable that the support for companies will be wound back.
The biggest and most effective support that the government has put in place is the Furlough Scheme. The scheme has no doubt saved many jobs, and livelihoods, and is one of the most generous in the world but all good things have to come to an end, especially one as expensive as this. Companies will need to contribute 10% to the furlough grant from July, and 20% from August. This may prove costly if some staff are to remain on furlough. See the table below that sets out what needs to be paid and when.
Also, have a look the excellent infographic below by HR consultants Croner. However, if you feel that the decisions ahead could be putting your cashflow under pressure then do give us a call. Maybe you can use our daily cashflow template. Remember that you will need to pay redundancy for any employee that has been employed for more than 2 years. If the company cannot pay then it is in effect insolvent. Read our options page to decide what the best action is.
Table outlining payments
Categories: Implications for Directors