- The furlough scheme is due to end on 31 October 2020. From 1 September 2020 employers will have to contribute 10% of wage costs (in addition to NI and pension contributions) and from 1 October employers will have to contribute 20% of wage costs. HMRC will continue to pay the bulk of wage costs (70% from 1 September, reducing to 60% from 1 October) but many employers are already consulting over proposed redundancies.
- In the meantime, HMRC has written to around 3,000 employers which it believes have overclaimed under the furlough scheme. Any employers which have overclaimed in error should take immediate steps to report the overclaim to HMRC, given the risk of penalties for failure to report. HMRC's action comes amid reports of widespread fraud under the scheme, with some surveys suggesting that 2/3 of furloughed workers carried out some work prior to the introduction of flexible furlough.
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