HMRC have issued more guidance regarding the job retention scheme which answers some of the questions that were raised following the initial announcement.
Key points include:
- Employers can claim 80% of furloughed employees’ normal salary, up to £2,500 a month, plus the associated Employer NI and minimum auto-enrolment employer pension contributions.
- Employees hired after 28 February 2020 cannot be furloughed.
- Employees who were made redundant since 28 February 2020 are covered by the scheme if they are rehired by their employer.
- Employees on agency contracts are included.
- Employees with more than one employer can be furloughed for each job.
- To be eligible for the subsidy the employer should write to their employee confirming that they have been furloughed and keep a record of this communication.
- For employees who have been employed for 12 months and whose pay varies, the employer can claim the higher of either the same month’s earning from the previous year or the average monthly earnings from the 2019-20 tax year.
- Employers will be able to submit one claim at least every 3 weeks, which is the minimum length an employee can be furloughed for.
Full details can be found here: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
What is still unclear is are directors included. We will post further updates as soon as we have any further information.
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