Coronavirus Job Retention Scheme FAQs

The government rules state an employee must've been on your employer's PAYE payroll on or before 19 March 2020 and notified to HMRC on an RTI submission on or before 19 March 2020. For example:

• If an employee started working for you on February 21 but wasn't paid by you until your March payroll that was paid on 20 March 2020 and no RTI submission made until this date. This employee would not be eligible for furlough pay as part of the Job Retention Scheme.
• If an employee started work for you on 1 March and was paid and included on the FPS on 19 March the employee would be eligible for furlough pay as part of the Job Retention Scheme.

The Government's current guidance states:

'You can claim for any regular payments you are obliged to pay your employees. This includes wages, past overtime, fees and compulsory commission payments. However, discretionary bonus (including tips) and commission payments and non-cash payments should be excluded.'

Yes. Furlough is for employees you would have to let go as there is no work for them, this doesn't necessarily mean the whole business.

Yes. Company directors can be furloughed as long as they had a PAYE salary to calculate payments against, dividends aren't part of the Job Retention Scheme. This includes single director companies. Only company directors can continue to undertake their statutory duties while furloughed, such as filling out company accounts etc. This does not constitute revenue generating work.

Yes. You can work for unrelated companies while furloughed, but could not, for example, work in another branch of the same company.

Up until 30 June 2020, No. For an employee to classed as furloughed, and to be eligible for the grant, they must not carry out any work at all.

From 1 July, employees can work part-time and you can still claim a grant for the hours not worked. 

Employees who are being furloughed can go on training if they do not generate revenue or provide services to their employer while undertaking training activities. If the training is at the employer’s request, employees undertaking the training must receive at least the National Minimum Wage (NMW). Any shortfall between the amount paid to the worker and the grant, 80% of regular salary, must be met by the employer.

Apprentices are treated as if they are on training and hence must be paid at least the NMW even if they are furloughed.

The guidance that salaried staff should have their salary value used in the calculation. Average pay for furlough includes SSP, and any other statutory income, if they're on variable pay. However, the period of calculation can be different so the option to use the same period in the previous year or, average over the last 12 months may be beneficial to your employee.

The Government's latest guidance states: 'Employees who are shielding in line with public health guidance can be placed on furlough.'

Employers are able to claim back up to 14 days per eligible employee that's affected by COVID 19. This means that although the employee can be paid SSP from day one of the second period of self-isolation, the employer cannot make a claim.

The Government have recently announced planned changes to the scheme:

• From July it will not be possible to furlough staff who were not fully furloughed earlier in the scheme. They must have been furloughed at least 3 weeks before the end of June.
• From August the government will stop funding the employer’s national insurance contribution.
• From September the government will pay 70% of the average earnings up to the £2,500 cap and employers must top up at least 10%.
• From October the government will pay 60% of the average earnings up to the £2,500 cap and employers must top up at least 20%.

If your business misses the claim deadline but you believe you have a reasonable excuse, you should contact HMRC to discuss if a late claim is possible.

If you make a mistake in a claim that means you received too little money, you’ll need to amend it within 28 calendar days after the month the claim relates to – unless this falls on a weekend or bank holiday, in which case the deadline is the next weekday. For example, the deadline to amend claims for November is Tuesday‌‌ 29‌‌ December. Read more >