Coronovirus Update 4.1 - Financial support available - Update on Job Retention Scheme
Having said we would only do one update a week, yesterday evening HMRC issued detailed guidance on the Job Retention Scheme (furloughing). The full details can be found here:
Key points that have been clarified/changed
You will be able to claim the lower:
80% of the gross salary (as of 28 February for fixed pay clients – for variable pay the calculation methods are relatively straight forward and in the article)
The associated employers NIC
The associated minimum 3% employer contributions on qualifying earnings – note if you pay a higher employer % or on full salary you cannot claim the extra
They expect the scheme to be up and running by the end of April
The scheme will run for at least 3 months backdated to the 1 March 2020 – i.e. it will run to at least 31 May 2020
There’s a specific section on volunteering:
A furloughed employee can take part in volunteer work or training, as long as it does not provide services to or generate revenue for, or on behalf of your organisation.
However, if workers are required to for example, complete online training courses whilst they are furloughed, then they must be paid at least the NLW/NMW for the time spent training, even if this is more than the 80% of their wage that will be subsidised.
I’d actually say this is less flexible then I would have hoped it to be – what does it mean to provide services to/on behalf of? We have asked for additional guidance to be issued for charities on this.
Any questions please yell!