UK - Job Retention Scheme Phases

The job retention scheme was quickly set up by the Government when it became apparent that lockdown measures needed to be put in place in the UK when Coronavirus was declared a Pandemic.

What is Furlough or the UK Governments Job Retention Scheme?

Furlough leave provides employers and businesses with an option to keep their employees on their payroll without them working, or working reduced hours in response to the unprecedented situation we face from the COVID-19 Pandemic. The furlough scheme prevents people from being made redundant, laid off, or employers or businesses having to pay their staff when they have no income due to UK’s Coronavirus lockdown measures.

What are the financial implications of the UK’s Furlough Scheme?

According to a survey published by the British Chamber of Commerce, two-thirds of British businesses have used the government’s furlough scheme since it was announced, and one in three companies have put at least 75 per cent of their workforce onto the scheme.

The Office for Budget Responsibility has estimated that the cost of furloughed workers during the Coronavirus Pandemic would reach £42 billion, however, this was estimated before the government communicated they were extending the scheme.

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What are the practical things you need to think about and consider when re-opening your business over the next weeks and months?

No businesses are going to be able to reopen and operate in the same way as they did prior to the Coronavirus Pandemic and no one really knows how long this will go on for, therefore, the most viable option for you as a business is to plan how it will work now within the new guidelines.

Hayvenhursts Advice & Recommendations

Take your time to evaluate and break down each of your services and products

Ask yourself if you need to add products and services to meet the needs of your customers now, and in the short and long term

Think about how can you change your services to meet the needs of your customers now, and in the short and long term

Decide and agree how you can adapt your business premises and staff processes to enable you to operate safely and reopen in line with the new government guidelines. Ask for staff input and ask for support from other businesses as an external view will help you to think outside of the box and have new ideas

Speak to your suppliers to agree how things can work for you and them moving forward

Speak to the local businesses around you to see how their business plans are going and what their timescales and strategic plans are

If you are renting a commercial property speak with your landlord regularly to agree rental plans which will work for you both, now and moving forward

Ensure you have a good accountancy service like Hayvenhursts who will work with you to plan your business finances, help you to produce a business plan for the short and long term and be someone who you can rely on at this difficult financial time. They will have the skills and expertise to understand what is happening in your business and the economy and be able to put together a realistic, achievable and robust financial business plan with you

Find out more here: hayvenhursts.co.uk/accountancy-services/job-retention-scheme-phases/