Extension to Coronavirus Job Retention Scheme (Furlough)

The Coronavirus Job Retention Scheme (furlough scheme) has been extended to 31 October 2020.

The scheme will continue in its current form until 31 July 2020. From 1 August 2020, employers will be able to bring employees currently on furlough back to work on a part-time basis if desired. However from 1 August 2020, employers will be required to make a contribution towards the salaries of their furloughed staff. Employees will continue to receive the 80% of their current wage.

The Chancellor is yet to confirm specific details surrounding the contribution an employer will be expected to make. We expect further details to be announced by the end of the month and we will of course provide a further update on our Covid-19 hub.

Furlough Scheme FAQ’s

Here are some answers to some FAQ’s we are receiving:

Q: ‘We are hopeful that we will re-open for business soon. If I bring my employees back   from furlough, can I put them on furlough again if required?’

A:  Yes, you can bring an employee back for a period of time and subsequently decide to put them on furlough again.

 The minimum period an individual can be furloughed for is 3 weeks. There is no minimum period that the employee has to work for before being furloughed again.

 You should communicate your plans in writing to the employees affected and keep this for your records.

Q: Can employees do the odd bit of work for us while furloughed?

A:  No, you may jeopardise your eligibility to make a claim. Company Directors may carry out their statutory duties but must not generate commercial revenue or provide services to or on behalf of their company.

Q: Are furlough wages paid to staff taxable?

A: Yes. Furlough pay is subject to PAYE and employees NI in the same way as regular gross pay. 

Q: You have processed my furlough claim and I have received the monies. Why does the amount I have received not equal the total wages paid to furloughed employees?’

A: The furlough claim total is made up of:

Furlough pay before PAYE/employees NI + employers NI contributions due on the furlough pay + minimum employers pension contributions due on the furlough pay

This is why in the majority of cases the claim monies received will not reflect the net pay due to the employee.

Should you have any other questions please do not hesitate to get in touch with a member of our team and we will be happy to help.

We will update our hub with further details on the extension to the scheme when they have been announced.

Louise Harrison

We’re here to help

With all the legislative changes and updates over recent days in these ever changing and uncertain times, our teams are briefed and here to help you and your business.

Whilst our physical offices are closed following the ‘lock down’ advice, the team at NR Barton are working remotely from home. If you have any questions you should not hesitate to contact your engagement partner or manager who will be happy to assist; our contact details can be found here.

For anyone unsure of who to contact, we are still answering phones (01942 242245) and we are answering emails to accounts@nrbarton.co.uk.

We’re here to help.

All the best

The NR Barton team

Want to read more of this?

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Alternatively read all our articles in our Covid-19 hub here: https://www.nrbarton.co.uk/news/blog/category/covid19/