The Chancellor made an announcement on 29th May 2020 that the furlough scheme will be tweaked and extended.
Here is the summary:
From 1st July:
Employers can bring people back part time (1 month earlier than expected).
Employers will pay the cost while the employee is working.
HMRC will pay for 80% of the furlough pay as before (capped £2500 a month).
As per July above, but employers can’t reclaim employers NI and pension costs
Employee furlough pay is still 80% (capped £2500 a month).
Employers have to pay 10% of this (up to £312.50) and can’t reclaim employers NI and pension costs.
The HMRC grant is to employers is therefore 70% (capped at £2,187.50 a month).
Furlough pay for the employee is still £80 % (capped £2500 a month).
Employers have to pay 20% of this (up to £625) and can’t reclaim employers NI and pension costs.
The HMRC grant is to employers therefore is 60%, capped at £1,875.
Employers can still top the furlough pay up to 100%.
As a side note, HMRC are advertising a ‘whistle blowing’ service for employees not receiving their 80%.
! A key point ! The 10th June is the deadline to add any new furlough employees. You will not be able to claim the HMRC grant for anyone furloughed after this date.
Employers must agree with their furloughed employee(s) any new flexible furloughing arrangement, and confirm this in writing.
We are expecting a change to the claim form, in that employers will be required to submit data on the usual hours an employee would be expected to work, and what they actually worked. There is also a change to the period you can claim on each form (from 1st July).
Further guidance coming 12th June with regard to how to calculate the grants. The current detail from HMRC can be found HERE
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