The government have introduced the idea that employers with employees on their PAYE records can be paid 80% of their wage and can make a claim to receive this back.

How It Works:

  • Employees must have a furloughed status in order to receive this. You can't pay an employee for a full month of work as normal and then put in a claim to get those wage costs covered. The staff must be furloughed in order to get the claim

  • Employees must go through the payroll. We will process the wage for you and calculate what 80% of their standard wage would be. We will process this on the payroll and you should pay that employee their net pay as normal. Once the claim has been accepted, you will then receive this money back from the government

  • Employees must have been processed through the payroll either on or before 19th March 2020. If an RTI submission has been submitted after this date, they won't be eligible for furlough

  • The claim can be backdated from 1st March 2020 

  • Employers can pay the 20% remaining difference to give the employee a full wage but this isn't compulsory 

  • Directors may be furloughed but they can only do so if they aren't doing any work. If they are carrying out tasks that they would on a normal, working day to day basis, they won't be eligible

  • If an employee is already on Maternity/Paternity/Adoption Leave and receiving those statutory payments, they wouldn't receive furlough pay

From July 2020, employers can bring employees back to work part time where they will be able to both work and be furloughed. An example of this is having them back to work for 2 days of the week and furloughed for the other 3 so you can still claim for those 3 days.

From August 2020, employers will no longer be able to claim their costs involved in furlough pay claims. This means that employers NI and pension costs will have to be covered by the employer.

From September 2020, the government will only cover 70% of the wage. Employers will have to pay employers NI and pension costs and also top up the wages so that employees still receive the 80% furlough pay amount. 

From October 2020, the government will only cover 60% of the wage. Employers will have to pay employers NI and pension costs and also top up the wages so that employees still receive the 80% furlough pay amount.

At the moment, October will be the last month that the job retention scheme is operating and so after this time you won't be able to use the scheme to claim back any wage payments. We will update this if any changes are made.

Employers should check if their employees are eligible for the scheme and should ensure that they are signed up for PAYE Online for Employers before trying to make a claim. Please use the link below to do so. 

You will also be able to use the link below to make your claim.

We know there may be specific questions you have relevant to your business so please get in touch and we will do our best to advise. These are confusing times but we are always here and happy to help. 


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