2 July 2020

This update covers:

  • Flexible furlough scheme now in place.
  • VAT deferral scheme has now ended.

Flexible furlough scheme now in place

Salons and barbershops can now bring furloughed employees back to work on a part-time basis. This change has been in force since yesterday, 1 July 2020.

You can decide the hours and shift patterns your employees work. The government will continue to pay 80% of salaries for the hours your employees do not work (This goes down to 70% in September, and 60% in October).

Find more information on the government website.

The furlough scheme will remain open until October. Find more details about how it will work until then.

VAT deferral scheme has now ended

The VAT payments deferral scheme ended on 30 June 2020.

If you deferred VAT payments between 20 March 2020 and 30 June 2020, you now need to:

  • Set up cancelled direct debits in enough time for HMRC to take payment.
  • Continue to submit VAT returns as normal, and on time.
  • Pay the VAT in full on payments due after 30 June.

Any VAT payments you have deferred between 20 March and 30 June should be paid in full on or before 31 March 2021.

Find out more on the government website.

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