Since the announcement by the Government on Saturday 31st October, the Furlough scheme has been extended and will run until March 2021.
Coronavirus Job Retention Scheme (Furlough) Summary:
- Job Support Scheme Open/Closed has been replaced with an extension of the Coronavirus Job Retention (Furlough) Scheme
- The government will pay 80% of wages capped at £2500 (employers continue to cover NIC and pension)
- Flexible furlough will be allowed in addition to full time furlough
- All employers with a UK bank account and UK PAYE scheme can claim the grant.
- Neither the employer nor the employee needs to have previously used the furlough scheme
- Employees must have been included on an RTI submission on or before 23.59pm 30th October to be eligible for furlough
- Employees can be on any type of employment contract
- Furlough cannot be claimed for an employee on notice after 1st December 2020
Our simple guide on the Furlough scheme extension is an essential for all business owners. Click on the link below to download your copy or share this page with your networks to ensure all employers are up to date with the changes.
The steps an employer should take before applying for the furlough scheme:
- Assess which employees to put on Furlough
Each employer should consider who should be furloughed. These have to be employees who would otherwise have been laid off.
- Decide the company’s approach to topping up pay
You are not obliged to but you may wish to do so if you can afford to. It may help with staff loyalty in the longer term.
- Communicate with the affected staff
As the furlough leave is stated to be subject to existing employment law, it is likely that you need to obtain the agreement of your employees to the change.
- Follow up the discussion in writing
Confirm a record of the conversation and the fact that the employee has agreed.
- Submit information to HMRC to claim the grant
There is an online portal for employers to submit claims for support.
To find out more and to answer many of your questions we have put together an 8-page Factsheet covering registration, eligibility, deductions, refunds and much more. To download your copy just click on the button