As I’m sure you are all aware, Boris announced [late] on Saturday 31 October the Coronavirus Job Retention Scheme (CJRS), due to end on 31 October, will be extended until December 2020.
This is due to the further National Lockdown coming into force on Thursday 5 November and expected to last until at least Wednesday 2 December 2020.
The Job Support Scheme (Open and Closed), due to start on 1 November, will be delayed until this new, extended furlough scheme ends.
We await full guidance, due to be released on Wednesday 4 November, in the meantime, here are a few FAQs:
Q. Can I put an employee on furlough now if she/he was not on furlough before?
A. Yes, as long as the employee was on your employer’s PAYE payroll before midnight on 30 October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30 October 2020.
Q. Can I put a new employee on furlough?
A Yes, as long as the employee was on your employer’s PAYE payroll before midnight on 30 October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30 October 2020.
Q. When will this extended period of furlough end?
A. The precise end date is unclear, but the English lockdown restrictions look set to be in place until at least 2 December.
Q. What contribution will the Government make under this extended furlough scheme?
A. For the last three months, the Government contribution has been reducing whilst the employer contribution has been increasing. However, under this extended scheme, the government will pay up to 80% of an employee’s normal pay, capped at £2,500 and employers will be responsible for NICs and pension contributions, pretty much how it was in August.
Q. Can my employee on the extended scheme work any hours?
A. Yes. Flexi-furlough will continue to be an option, so employees can work part-time and employers can claim for unworked hours.
Q. I’ve already notified my employee that she/he will go onto the JSS on 1 November, what should I do?
A. Get in touch with your employee and explain the Government has made a last-minute decision to extend the furlough scheme. If they have been on furlough already, ask them to agree to continue on furlough until the JSS comes into force.
I’m sorry I don’t have any further definitive guidance at present, but I will update you as soon as I do.
Please let me know if you would like wording to use to explain the situation to your employees or for any additional support during these ever-changing times.
In the meantime, please do call or email if you have any questions at all. Stay Safe.
Call 07789 038409 or email [email protected]