Published: 6 November 2020
As we enter the second lockdown, the Chancellor has brought welcome news to many businesses yesterday by extending the furlough scheme through to March 2021.
This means that a business can furlough any employees that were on the last payroll run and RTI submission to HMRC on or before 30th October – no previous furlough claim needs to have been made by the employer – the grant covers 80% of the employee’s wages (the furlough rate for January – March 2021 will be confirmed in January 2021) for time on furlough up to a cap of £2,500 (for the full month of furlough) – all of the furlough claim must be passed onto the employee.
Employees can work part time & are paid by the employer for the hours worked based on normal rate of pay. There is no minimum / maximum working / furlough split required (aside from the cap on what can be paid). Employees are required to pay the full employer’s NIC and pension cost.
For employees that were employed & on the payroll on 23 September 2020 and who were made redundant or stopped working afterwards can be reemployed and claimed for by their previous employees – the employer must have made an PAYE RTI submission between 20 March 2020 and 23 September 2020 for earnings to this employee to qualify.
In all cases the employer must have confirmed in writing to their employee that they have been furloughed or flexibly furloughed.
If you need any further information, on any of the above or any other matters affecting your business, please do get in touch.
Our office remains open so you can call on 01743 249 992 and speak to us, or send us an email to email@example.com and we will get back to you.