Find out more about the upcoming changes to the Furlough scheme coming into place over the coming months.
With effect from 1 July, the flexible furlough scheme is being introduced, here are some important points to note:
- Only those who have been on the existing furlough scheme (at any point since March 2020) can be put on the new flexible scheme.
- The last claim period for the existing scheme will run to 30 June 2020 and must be claimed by 31 July 2020.
- There is no maximum length of claim periods up to 30 June 2020 but they must end at that point.
- The final claim period may not coincide with your regular pay periods.
- The flexible scheme will run in the same way, i.e. a full month at a time and not necessarily coinciding with your pay periods (this will affect weekly payrolls rather than monthly ones).
- HMRC have announced how to correct previous claims. Where an error has been made on a claim and you have received more than you should have, this can now be adjusted in the following claim, please let us know so we can adjust accordingly. If you could have claimed more than you did, HMRC should be contacted by phone – we can do this on your behalf.
- *** Remember, you can pay the additional 20% of your staff’s wages for any annual leave taken during their furlough period, please advise us where this is the case ***
Flexible Furlough Scheme
- For those flexibly furloughed, you will need to calculate your employees usual working hours (fully furloughed employees calculations remain unchanged).
- You will need to record actual hours worked and furlough hours per pay period.
- You will pay your staff for the hours worked and claim furlough for the other hours to make up their ‘usual working hours’. Your staff will then receive 80% of their furloughed hours and 100% of their worked hours.
- The number of employees claimed on the new scheme cannot exceed the number of employees claimed on the previous scheme for any claim period.
Changes to government support to the Job Retention Scheme (Furlough)
- From 1 August, employers are responsible for paying the employer’s national insurance and employer’s pension contributions on furlough pay (and regular pay).
- From 1 September, employers are responsible for paying 10% of the furlough pay as well as the above.
- From 1 October, employers are responsible for paying an additional 10% of the furlough pay as well as the above, making total payable 20% of furlough pay + employer’s NI + employer’s pension.
- From 1 November, furlough is no longer payable.
How we can help
If you would like further help or support in this area, please get in touch for a free no-obligation initial consultation.
Tel: 028 9181 3295 and speak to Sara