Coronovirus Update 4.1 - Financial support available - Update on Job Retention Scheme

Dear all

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:

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

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)

• £2,500

PLUS

• 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!

Many thanks

Andy