Do you employ staff in the UK? Is your organisation a recipient of CJRS ‘furlough’ grants?
You must be aware that the Government is pulling the plug on support to employers for furloughed staff at the end of this month, as they anticipate that the economy will be back to normal by October. The grant claims for employees furloughed in the month of September are 60% of the employee’s usual pay up to a maximum cap of £1,875.
Make sure that you make your final claims for the month of September by 14 October and make any adjustments by 28 October 2021.
The end of furlough may be the trigger for many businesses to assess their staffing levels going forward and many may be considering making the tough decision about which staff to make redundant.
Dealing With Redundancies Correctly
Remember that there are key steps that need to be followed as far as employment law is concerned. It is also important to treat any payments on termination of employment correctly for tax and national insurance purposes. In genuine redundancy situations, the first £30,000 paid on termination of employment is tax-free. However, many employers get this wrong.
The £30,000 includes statutory redundancy pay and any enhancement from the employer as well as continuing benefits such as private health insurance.
The excess is subject to income tax and employer’s national insurance. We can assist you to ensure that the process of redundancy is dealt with correctly.
PS: We specialise in helping charities and businesses in the health sector (optometrists, ophthalmologists, and opticians) optimise their resources, thereby, adapting, growing, and thriving. If you want to know how we can help your charity or business, then connect with me, here on LinkedIn or send an email to firstname.lastname@example.org