A few weeks ago, for most people “Furlough Leave” was probably the name of the horse they backed in last year’s Grand National (which fell at the first fence).
There can be few people now who haven’t heard of the term, though understanding how Furlough Leave works in practice will probably remain patchy until the grant application system is up and running.
As at 8 April 2020, we can assume that:
- Employers can claim a grant for each employee or PAYE worker (which can include salaried company directors and agency workers);
- Claims can be made for the lower sum of £2,500.00 per calendar month or 80% of monthly wage cost (based on gross salary as at 28 February 2020);
- The sum claimed by grant is a gross sum rather than a net sum, and thus will be subject to tax and National Insurance;
- Employers are also able to claim, in addition, for employer National Insurance contributions and employer auto-enrolment pension contributions;
- It appears that each submitted claim will have to be for a minimum of 3 consecutive weeks period per employer or PAYE worker (claims can be backdated to 1 March 2020);
- The scheme is open to employers who created and shared a UK PAYE payroll scheme on or before 28 February 2020, have enrolled for PAYE online and have a UK bank account;
- The HMRC online claims portal is scheduled to open on Monday 20 April 2020;
- Current indications are that HMRC will allow a 4 – 6 day claim processing period in order to be able to make background checks for anti-fraud purposes
For further information or advice, please contact Dax Keeling on 0114 220 2172 or email email@example.com