Furlough is probably a term you never heard before March 2020. Now? We hear, smell and see it everywhere.
Furlough scheme (announced March 2020) has been one of the main government support mechanisms of the coronavirus pandemic. Countless companies have availed of the furlough scheme and DJB Accounting can provide support to ensure your business can avail of government support in the most efficient way.
If someone is furloughed, it’ll be as a result of their employer making use of the Coronavirus Job Retention Scheme (CJRS). This is one way for businesses to try and stay afloat while unable to trade (either completely or to their usual capacity) rather than closing up shop and making people redundant.
What happens during furlough?
It's important that employees do not work for you while they're furloughed. HMRC will pay 80% of employee wages (70% in September, 60% in October), up to a maximum of £2,500 per month.
If you are confused or want any help with furlough calculations, or any form of business support, contact us at DJB Accounting
The state has made companies the gatekeeper for this new form of welfare, the furlough protection scheme.
To furlough an employee, they need to have been on your business’s payroll on or before 19 March 2020. You must have made a Real Time Information (RTI) submission for each furloughed employee on or before 19 March. RTI means information about tax and other PAYE deductions that you transmit to HMRC every time you pay an employee. An employee who has recently stopped working for you may still be eligible for furlough if: they were employed by you as of 28 February and on your payroll (with an RTI submission as proof) you made them redundant or they stopped working for you between 28 February and 19 March You’d need to rehire and then furlough them for them to qualify for the scheme. If your employee is shielding in line with public health guidelines or lives with someone who’s shielding, they can be furloughed. Similarly, if an employee is temporarily unable to work because of childcare responsibilities or caring for a vulnerable person at home, they can be furloughed.