The Final Furlough? – More changes to the scheme
I remember a time when there was a budget once a year and we all braced ourselves for change and scurried around to interpret the Chancellor’s speech and communicate that to clients. This is happening daily now!
Just as you thought the furlough scheme was dead or dying, it is revived to cover the new national lockdown starting on the 5th November.
I will try to go through this, but it could get confusing. The old furlough was replaced with the new furlough but that has now been paused and the old furlough extended. Phew.
In a nutshell the old furlough is where employers could claim 80% of an employee’s gross wages up to a maximum of £2,500. Employers must still pay Employers National Insurance and pension contributions.
Unlike the old furlough, where employees could not work, now employers have the flexibility to bring workers back on a part-time basis.
The extended furlough will be paid upfront to cover wages and will be extended until December.
To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
Businesses required to close in England due to local or national restrictions will be eligible for the following:
- For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
- For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
- For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
There are no details on how these grants can be claimed – more details to follow.