More detailed information about the percentage of wages that owners of limited companies will have to pay under the Coronavirus Job Retention Scheme (CJRS) when the government scales it back has now emerged.

It appears that 25% is the amount that owners of these companies will need to pay from August, which is when the government will start to cut back on its payments to furloughed workers. This figure was cited in a report in the Times, but the Treasury is expected to confirm it very soon. What it would mean is that contractors who operate using a personal service company (PSC), which is classed as the employer under the CJRS, would have to meet 25% of their furloughed wages themselves.

This news will be a further headache for PSC contractors who are already wrestling with the impact the IR35 tax changes are having on their ability to operate – with some companies now more reluctant to hire them due to these reforms.

Many of them were confused by the guidance the government issued on applying for the CJRS and they are now facing the possibility of having to make payments of up to £500 per month in cases where the maximum CJRS amount of £2,500 is currently being paid.

Getting some advice from accountants in Goole, or any other part of the country, who specialise in dealing with limited company contractor issues is likely to be something many of them look at doing between now and August.