Following on from the Governments announcement on Saturday 31 October the furlough scheme will remain open until December with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500.
Employers small or large, charitable or non-profit are eligible for the Job Retention Scheme. Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time and will only be asked to cover National Insurance and Employer Pension contributions which, for the average claim, accounts for just 5% of total employment costs.
The extended scheme will operate the same way the previous scheme did. Flexible furloughing will be allowed in addition to full-time furloughing. All employers with a UK bank account and UK PAYE schemes can claim. Neither the employer or the employee needs to have previously used the CJRS.
To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 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.
Employee’s can be on any type of contract and employers can claim the grant for the hours their employee’s are not working, calculated by reference to their usual hours worked in a claim period.
Such calculations will broadly follow methodology as currently under the CJRS. When claiming the CJRS grant for furloughed hours, employers will need to report and claim a minimum period of 7 consecutive calendar.
Employers will to report hours worked and the usual hours an employee would be expected to work in a claim period. For worked hours, employee’s will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts.
Here at De’Ath Downton our offices will be open during this 4 week lockdown and very much in business to deal with any accountancy queries! we won’t let you down!