The government are closing support to employers for furloughed staff at the end of September 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 September by 14 October and make any adjustments by 28 October 2021.

The end of furlough may trigger 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 essential 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, but many employers get this wrong.

The £30,000 includes statutory redundancy pay and any enhancement from the employer and continuing benefits such as private health insurance. The excess is subject to income tax and employers’ national insurance. We can, of course, assist you with the process to ensure that the redundancy process is dealt with correctly.