UK’s furlough and business loan schemes go live

Please note: This item is from our archives and was published in 2020. It is provided for historical reference. The content may be out of date and links may no longer function.

UK’s furlough and business loan schemes go live

UK government schemes to help employers pay workers on temporary leave and provide loans for medium-size and larger businesses went live Monday.

The UK government scheme aiming to help workers on temporary leave enables employers to make claims to tax authority HMRC for 80% of their employees’ wages up to a £2,500 monthly cap. The Coronavirus Job Retention Scheme applies to organisations whose operations have been severely affected by the coronavirus and have put their workforce on temporary leave. The scheme also extends to employer National Insurance contributions on that subsidised pay and employer pension contributions up to a minimum level.

HMRC provided guidance for employers on how to use the scheme.

The scheme was first announced on 20 March by UK Chancellor of the Exchequer Rishi Sunak and has been extended to the end of June from its backdated start of 1 March.

In a tweet, Sunak said: “Exactly one month ago today I announced the unprecedented decision to step in and help pay people’s wages. We promised support would be available by the end of April.”

HMRC issued guidance for employers to check if they are eligible to claim through the scheme and a calculator to work out how much they are able to claim.

Loans for medium and larger UK companies

The Coronavirus Large Business Interruption Loan Scheme is available through lenders accredited by the British Business Bank. The scheme facilitates access to finance for medium-size and larger UK businesses that are experiencing lost revenue and disrupted cash flow as a result of the coronavirus pandemic.

Under the scheme lenders can provide up to £25 million to businesses with a turnover of between £45 million and £250 million, and up to £50 million for businesses with a turnover of more than £250 million.

The British Business Bank will also partner with the UK government on a Future Fund, which will issue convertible loans of between £125,000 and £5 million to “innovative companies which are facing financing difficulties due to the coronavirus outbreak”. The scheme will require businesses to have at least equal match funding from private investors and will launch in May.

The UK government has provided a hub for all coronavirus-related business support.

For more news and reporting on the coronavirus and how management accountants can handle challenges related to the pandemic, visit FM’s coronavirus resources page.

Oliver Rowe (Oliver.Rowe@aicpa-cima.com) is an FM magazine senior editor.

Up Next

With greenhouse gas reporting, sizable gaps persist

By Bryan Strickland
September 5, 2025
Large companies in the UK are making progress as more sustainability reporting requirements approach, but they could face significant challenges when seeking assistance from smaller companies in their supply chain.
Advertisement

LATEST STORIES

With greenhouse gas reporting, sizable gaps persist

Accountability: Inescapable, challenging, and valuable

US business outlook brightens somewhat despite trade, inflation concerns

Elevating productivity through strategic business partnering

Mark Koziel Q&A: Talent, sense of community, profession opportunities

Advertisement
Read the latest FM digital edition, exclusively for CIMA members and AICPA members who hold the CGMA designation.
Advertisement

Related Articles