A chartered accountancy firm in Exmouth has called the Government's announcement that its Coronavirus Job Retention Scheme will be extended 'good news' for the area's businesses.

In an official statement made yesterday by Chancellor Rishi Sunak it was announced that the job retention scheme will be extended until the end of June.

The scheme, which allows firms to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500, is available to all employees who are on your PAYE payroll on or before 19 March 2020.

Exmouth based, Thompson Jenner LLP Chartered Accountants' Partner John Westley told Nub News: "It's good news that the scheme has been extended. I suppose we would all rather go back to work but if businesses cannot reopen they will be relieved that the scheme is continuing.

"One of the gaps we've noticed with our clients is a rule regarding eligibility for workers who have recently changed jobs. People who were not on payroll before March 19 seem to be falling through the cracks. We've asked HMRC for clarification on that point."

Eligible employees include full time, part time, agency and zero hour contract workers.

The scheme, which allows firms to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500, was originally open for three months and backdated from the March 1 to the end of May.

However, the Chancellor said he would keep the scheme under review and extend it if necessary.

Chancellor of the Exchequer, Rishi Sunak, said: "We've taken unprecedented action to support jobs and businesses through this period of uncertainty, including the UK-wide Job Retention Scheme.

"With the extension of the coronavirus lock-down measures yesterday, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity.

"It is vital for people's livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery."

If have come across any problems with the scheme or need advice click here for more information on Thompson Jenner LLP Chartered Accountants.