Updated information on Furlough
Our friends at 360HR have passed on the latest information from HMRC.
Under the flexible furlough scheme, employees no longer need to avoid doing any work for their employer, but can return to work on a part-time basis and then be furloughed for the hours that they are not working. The amount of time spent working verses furloughed need to be decided between employee and employer and the part-time working arrangements will need to be agreed in writing. As you know, only previously furloughed employees will be eligible.
Broadly, from 1 July, employers will claim a pro rata’d amount of 80% of salary, based on the proportion of hours not worked out of normal working hours. To calculate the normal working hours for those with fixed hours/pay, you simply take the number of hours worked in the pay period before 19 March 2020. To calculate the normal working hours for those with variable pay, you take the higher of (a) the average number of hours worked in the tax year 2019 to 2020 or (b) the corresponding calendar period in the tax year 2019 to 2020.
The most significant change is that the minimum three week period for furlough has been removed (as of 1 July 2020). There is no minimum period, although any claim through the CJRS portal must be in respect of a minimum one week period.
The way the information was released was by making changes to most of the existing guidance, and by issuing three new pieces of guidance. It’s simply horrible and is going to take some time to put together a detailed Update for you. So, in the meantime, for those of you who need the detail urgently, links to the relevant new guidance are set out here:
(1) Check if you can claim (original employer guidance doc – now version 14) – UPDATED (https://lnkd.in/eYzzGjz)
(2) Check which employees you can put on furlough (guidance doc) – UPDATED (https://lnkd.in/evQs5Vx)
(3) Steps to take before calculating your claim using the CJRS – NEW (https://lnkd.in/e5rzxcs)
(4) Calculate how much you should claim – NEW (https://lnkd.in/eyP5rwJ)
(5) Claim for your employees’ wages online – UPDATED (https://lnkd.in/epPf9SU)
(6) Report a payment in PAYE RTI – UPDATED (https://lnkd.in/eE8YxCQ)
(7) Part-furlough worked example – NEW: (https://lnkd.in/eSBipD9)
(8) Long list of worked examples – UPDATED (https://lnkd.in/ebxX9D9)