Personal tax
The outcomes of an earlier review by the government into mixed-use property purchases and multiple d...
By RJP LLP on 18 March, 2024
Business Services • Business Tax • Coronavirus Advice
The Updated Furlough Scheme – claims for June and July 2020
By RJP LLP on 16 June 2020
There is effectively a new furlough scheme from 1 July 2020. This article considers the practicalities for June and July 2020 claims only.
Note that Furlough claims will close to new entrants from Tuesday 30 June; because an employee’s furlough period must be a minimum of 3 weeks, effectively claims cannot now be made for anyone who was not already furloughed by Wednesday 10 June.
From July, the number of employees an employer can claim for in a period cannot exceed the maximum number claimed for in an earlier claim period. Therefore if some employees have alternated between working and being furloughed, they should all be furloughed at some point in a June claim.
Claims for June 2020
Claims for June 2020 are made under the existing scheme – if a furlough period straddles 1 July, it must be treated as ending on 30 June for the purposes of the claim, so that furlough days up to 30 June only are included in the June claim.
Claims for furlough periods for both June and July must be made in two separate claims and the claim for the period to 30 June must be made first.
Position from 1 July 2020
From 1 July businesses can bring previously furloughed employees back to work on a part time basis. The government will continue to pay 80% of their wages for any of their normal hours they don’t work. Up until the end of August.
Claims cannot be made until 1 July onwards.
Each employer can decide the hours each previously furloughed employee will work and will be responsible for paying their wages in full whilst they are working, whilst the government will pay 80% of their wages for the hours they don’t work.
If a working hours arrangement is agreed with an employee, it must cover at least one week, and it must be confirmed to the employee in writing.
The employer can then claim the furlough grant for that employee, for a minimum period of one week. Claims can however continue to be made for longer periods such as monthly cycles if preferred. It will be necessary to include within the claim, details of the employee’s usual hours of work and the actual hours they worked in the claim period.
Any employees not brought back to work can remain on full furlough and businesses can continue to claim the grant for their full hours under the existing rules.
