We haven’t got an awful lot of new information to pass on, but this Friday, further information on the changes to the furlough scheme and guidance on how to calculate these new claims are expected to be released.
Important to Note
It is, however, important for us to remind you that the scheme closes to new entrants on 30th June, and at that date, any employees furloughed must have been on furlough for a full three weeks.
The official guidance, therefore, is slightly misleading – if an employee is to be claimed for – they must be put on furlough for the first time by Wednesday 10th June at the very latest. It is important to note that if you are to furlough any employees after this date, you will not receive any money back for their wages.
This should only affect new furloughed employees – if they have furloughed in the past then you should be ok.
Furlough Changes by Month (Summary)
- applications will only be accepted regarding staff who have already been furloughed.
- businesses will be given the flexibility to bring furloughed employees back to work part-time. Employers can agree with their employees the hours and shifts their employees will work on their return.
- Employers will be expected to cover the salaries of employees when they are working, with the government supporting them by paying 80% for the period spent not working.
- The Grant will continue to cover 80% of gross pay but will now not cover the Employers National insurance or Employers Pension costs.
- HMRC will reduce the grant to employers, meaning that they will now pay 70% of gross pay for periods employees are not working, but the remaining 10% (to make up to 80%) will be funded by the Employer.
- HMRC will then only fund 60% of the gross amount being paid to a furloughed member of staff, with Employers now to pick up the 20% shortfall.
Charges for Future Furlough Claims
We have managed to hold off charging for Furlough claims since they were introduced – we hope this has helped our clients in this difficult time. We were keen to not add to the burden of businesses struggling to make ends meet.
However, the furlough calculations have become increasingly complex and onerous and have been taking up more and more of our time. I am therefore unable to avoid charging for their calculation.
From the 1st July onwards, we will now charge a minimum fee of £15 + VAT per calculation and this gives you half an hour of bookkeeping time. If your claim takes longer than this, we will charge your claim at an hourly rate of £30 + VAT an hour.
We hope for the majority of our clients the claim will cost no more than £15 + VAT.
This charge will come into effect for Furlough Claims after 1st July for July Payrolls and will not be backdated.