The Coronavirus Job Retention Scheme (Furlough Scheme) has been extended with employees receiving 80% of their current salary for hours not worked. The extension has created questions around the scheme so here we share the key facts.

Is the Scheme Still Flexible?

The scheme is still a ‘Flexible Furlough’ which means there is no minimum period of furlough and flexible furloughing is allowed in addition to full-time furloughing. Under the scheme, employees can work for some of the week and be furloughed for the rest, in proportions decided between the employee and the employer.

Can I Claim for Someone Not Previously on Furlough?

Yes, you can but to be eligible to be claimed for, employers must have made a Real Time Information (RTI) submission notifying payment for that employee to HMRC on or before the 30th October 2020.

What Type of Employees Can I Furlough?

There are no restrictions on the type of employee that can be furloughed. Employees can be on any type of contract and employers can agree any working arrangements with employees. Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.

Do I Need to Top Up Furlough Payments?

There is no requirement to top up furlough payments. For hours not worked by the employee, the government will pay 80% of wages up to a cap of £2,500 but the employer will still need to pay employer NICs and pension contributions and should continue to pay the employee for hours worked in the normal way. However, if an employee chooses to take agreed holiday during the course of their furlough the employer must also top up wages for those days.

Can Directors Be Paid Through the Furlough Scheme?

Directors can be furloughed and 80% of their pay claimed under the job retention scheme as long as the Director is paid via PAYE and is not actively providing services to the company or generating revenue. This includes any work which requires invoicing clients or suppliers.

Can I Remploy Someone I have Made Redundant?

You can reemploy someone you have made redundant before the furlough extension was announced if they were on the payroll on 23rd September 2020 but there is no requirement to put someone on furlough instead of making them redundant. As we have already mentioned, using the furlough scheme is not cost neutral and you will still need to pay Employers National Insurance and pension contributions for anyone you claim wages for.

What Records Do I Need To Keep?

You must keep a record of the following in regard to your furloughed employees and these records must be kept for a minimum of 5 years.

  • The number of hours the employee would usually work in the claim period.
  • The number of hours each employee has worked in the claim period.
  • The number of hours the employee will be furloughed for in the claim period.
  • The written agreement with your employees regarding the flexible furlough hours as set out under the Government “legal requirements“.
  • Details of your calculations and your claim reference.

What Are The New Claim Deadlines?

Claim for furlough days in

Claim must be submitted by

 November 2020

 14 December 2020

 December 2020

 14 January 2021

 January 2021

 15 February 2021

 February 2021

 15 March 2021

 March 2021

 14 April 2021

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