As you are no doubt aware the Job Retention Scheme has been extended to 31 March 2021 – with a government review date in place for January 2021.
These are some important points that we feel you should be made aware of:
- Deadline Date – 30 November is the last date that claims can be made for furlough claims for periods up to 31 October 2020.
- From 1st November 2020 rates changed again with employers being able claim 80% of an employee’s salary up to a max of £2,500. Employers will be required to pay pensions and NI costs. This link takes you to the rates previously in force: https://www.gov.uk/guidance/calculate-how-much-you-can-claim-using-the-coronavirus-job-retention-scheme#changes-to-the-grant-contributions-from-july-2020
- Claims relating to November 2020 must be made by 14 December 2020. Claims relating to each subsequent month should be submitted by day 14 of the following month.
- Flexible furlough is still available with employers paying full wage costs for the hours worked.
- Employers can claim for employees who were employed on 30 October 2020, as long as they have made a PAYE RTI submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee. This may differ where they have re-employed an employee after 23 September 2020.
- There is no maximum number of employees that employers can be claim for.
- For claim periods starting on or after 1 December 2020, you cannot claim for any days on or after this period during which the furloughed employee was serving a contractual or statutory notice period for the employer.
- The employer MUST have provided written confirmation to employees that they have been furlough and retain this paperwork for 5 years.
- The employee must not do any work for their employer that makes money or provides services for their employer or any organisation linked or associated with their employee whilst on furlough.
- From 1st December, HMRC will be publishing the names of Ltd companies and LLPs – presumably to reduce fraudulent claims.
The link below will take to you to the detailed government guidance, however, should you have any queries please do not hesitate to get in touch.