Coronavirus: Furlough employees

Following government announcements

Help and guidance for both employers and employees. We explain what it means to furlough and employee and what the process is to furlough employees.

Further guidance

The government have released the following guidance for employers and the following guidance for employees

The scheme is open to all UK employers who were operating a PAYE payroll scheme on or before 28 February 2020.

What are the stipulations?

Furloughed employees must have been on your PAYE payroll on 28 February 2020.

They can be employees with full-time, part-time, casual or zero hour contracts.

To be eligible for the subsidy, employers should write to their employee confirming that they have been furloughed and keep a record of this communication. These employees will not be able to work for the employer during the period they are furloughed.

 

 

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What you need to do next

All employees classed as ‘Furloughed’ will still need to be processed in the payroll with the normal deductions for tax, national insurance, pension etc.  HMRC are going to set up a separate online system where the employer can claim back up to 80% of the normal employer costs and hope to have this running by the end of April.

There is also some guidance which ICAEW have issued on the job retention scheme which you may find useful.

For more information

For more information on the process to furlough employees, please contact:
Sharon Hewitt, or call us on:

01483 416232