News from HMRC about Furlough (Coronavirus Job Retention Scheme)

The new Job Support Scheme, which was due to start on Sunday 1 November, has now been postponed until the furlough scheme ends.

The Coronavirus Job Retention Scheme (CJRS), (Furlough), which was due to end on 31‌ October, will now be extended, with the UK government paying 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500 for periods from 1 November.  Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme.

You will need to pay all employer National Insurance Contributions (NICs) and pension contributions. You can choose to top up your furloughed employees’ wages beyond the 80% paid by the UK government for hours not worked, but you are not required to do so.

There will be no gap in support between the previously announced end date of CJRS and this extension.

Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the original scheme, which was due to end on 31st October 2020. This means the extended furlough scheme is more generous for employers than it was in October.  ACAS also provides more details here

What you need to do now

  • Check if your employees are eligible for the scheme here
  • Agree working hours with your employees, so they know if they are furloughed fully or part-time during November.
  • Keep the records that support the amount of CJRS grant you claim, in case HMRC need to check it.  You can view, print or download copies of your previously submitted claims by logging onto your CJRS service on GOV‌.UK.‌ 

Further help and advice can be found here

From Furlough to Redundancy

Furlough and redundancy pay - McCabe and Co SolicitorsNew laws came into force on 31st July 2020 to protect the rights of employees who were furloughed under the Coronavirus Job Retention Scheme (CJRS).

Throughout the pandemic, the government has urged businesses to do right by their employees.  The majority of businesses have done so, however, there are a minority who have not.

The new laws ensure that furloughed employees who are then made redundant will receive redundancy pay based on their normal wage, rather than a reduced furlough rate

The new laws also apply to statutory notice pay and other entitlements, providing some reassurance during this difficult time.  During this notice period, employees must be paid and notice pay is based on normal wages, rather than their wages under the CJRS.

Employees with more than 2 years’ continuous service who are made redundant are usually entitled to a statutory redundancy payment that is based on length of service, age and pay, up to a statutory maximum. 

FURLOUGH – Coronavirus Job Retention Scheme Changes

FurloughThe Coronavirus Job Retention Scheme will close on 31 October 2020.

From 1 August 2020, the level of grant will be reduced each month

The table below shows Government contribution, required employer contribution and amount employee receives where the employee is furloughed 100% of the time.

Wage caps are proportional to the hours not worked.

  July August September October
Government contribution: employer NICs and pension contributions Yes No No No
Government contribution: wages 80% up to £2,500 80% up to £2,500 70% up to £2,187.50 60% up to £1,875
Employer contribution: employer NICs and pension contributions No Yes Yes Yes
Employer contribution: wages 10% up to £312.50 20% up to £625
Employee receives 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month

More information can be found here

The Coronavirus Job Retention Scheme

Coronavirus Job Retention Scheme: an update from HMRC | Cambridge ...Claim for your employees’ wages through the Coronavirus Job Retention Scheme

If you’ve had to dismiss staff because of coronavirus (COVID-19), you might be able to re-employ them and pay their wages through the Coronavirus Job Retention Scheme

Who can claim

You must have:

  • created and started a PAYE payroll scheme on or before 28 February 2020
  • enrolled for PAYE online – this can take up to 10 days
  • a UK bank account

Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.

For more information on Apprentices, click here

Employees you can claim for

You can only claim for furloughed employees that were on your PAYE payroll on or before 28 February 2020.

To claim, you will need:

  • your ePAYE reference number
  • the number of employees being furloughed
  • the claim period (start and end date)
  • amount claimed (per the minimum length of furloughing of 3 consecutive weeks)
  • your bank account number and sort code
  • your contact name
  • your phone number

You will need to calculate the amount you are claiming. HMRC will retain the right to retrospectively audit all aspects of your claim.

If you made employees redundant or they stopped working for you after 28 February

If you made employees redundant, or they stopped working for you on or after 28 February 2020, you can re-employ them, put them on furlough and claim for their wages through the scheme.

If your employee is on maternity leave, adoption leave, paternity leave or shared parental leave

The normal rules for maternity and other forms of parental leave and pay apply.

You can claim through the scheme for enhanced (earnings related) contractual pay for employees who qualify for either:

  • maternity pay
  • adoption pay
  • paternity pay
  • shared parental pay

Some of the rules are quite complicated, so more information can be found here