FURLOUGH (Corona Virus Job Retention Scheme)
ANNOUNCED ON THE 23rd March
Employers are able to claim up to 80% of employee’s normal wages / salary and also Employers Minimum Pension Contributions and Employers National insurance Costs (unless covered by the employer’s allowance for N.I)
Employees must be notified of the intention to place on furlough and must agree, and must not take on paid employment for employer during their furloughed hours
Employees must be paid the 80% furlough claim as a minimum and employers can opt to increase by paying the additional 20%
Scheme extended, and from the 1st of July, Employers can invite their Employees back to work
Employers to calculate their Employees usual hours for the day / week.
All Employees to be paid in full for hours worked.
Employers can claim up to 80% of the shortfall in usual / average hours through the Job Retention Scheme. Again, Employers can choose to increase the 80% and pay the remaining 20% if this are able to. Employers can still include Employers Minimum Pension Contribution and Employer N.I
For flexible furlough, an employee must have been on furlough previously for 3 weeks between the dates of 1st Of March to the 30th June or Returned from statutory parental leave after 10 June (this has been added since the announcement on 29 May).
There is no minimum claim period of a week for Flexible Furlough as of the 1st July.
Employers should keep copies of their calculation’s.
Employees to be notified again of the intention to bring back to work, albeit on reduced hours where applicable.
AS OF THE 1ST OF AUGUST
Employers cannot claim Job Retention Support in respect of any employer’s National Insurance payments or Employers Minimum pension contributions.
Employers can still claim up to 80% ( again with a cap of £2500) for Employees hours not worked in relation to their calculated Normal / Average hours.
AS OF THE 1st SEPTEMBER
Whilst the scheme continues, further changes occur here:
The grant will fall to 70 percent of reference salary, subject to a monthly cap of £2,187.50
AS OF THE 1st OCTOBER
The scheme continues, and further reduction apply:
60 percent of reference salary, subject to a monthly cap of £1,875.
Again, Employers are required to pay their own Employer Minimum Pension Contribution and Employer National Insurance
TURBOCHARGED SUMMER STATEMENT
On the 08/07/2020 it was announced of further support for employers once the Furlough Scheme comes to a close at the end of October.
To encourage employers to encourage staff back to work, it was announced that for EVERY employee that an employer has back to work from Furlough, and continues to employee them between Novemeber and January , the employer will receive a £1000 bonus.
The employee myst earn at least the lower earning limit for national insurance ( currently £520 per month ) between November and January 2021 to be eligible for this payout. This bonus figure could cost the Governemnt a whopping £9bn.
SECOND SELF EMPLOYED GRANT
The Governments top priority throughout the Covid19 situation has been to support people and try to protect jobs where at all possible. The first self employed grant timeline for applications closed on the 13th of July.
The chancellor extended his support and are providing a second and final grant very similar to the now closed first grant.
With the first grant offering 80% of trading profits in previous years, the second and final grant will look to offer 70% of previous trading profits to a maximum of £6570 in a lump sum payment.
It is hoped that the speed that this payment is turned around may be within 6 days of a claim being made.
The suggested time for the platform to be live for the second claim currently stands at the 17th of August. People are urged not to try and claim or call HMRC as currently the platform is not live.
One last difference to be able to make this second claim, is that you must be able to show that your business has been adversely effected on or after the 14th of July.