You will be logged off in  seconds due to inactivity and risk losing your quote. Click here to continue using this web page.

FLEXIBLE FURLOUGH

Joel Clyne 15 June 2020

Late on Friday evening (12 June 2020) changes to the flexible furlough schee​ ​ HMRC announced more​ details relating to the changes to the Coronavirus Job Retention Scheme (“CJRS”) which will apply from1 July 2020. 

The main change was confirmation that the CJRS will close on 31 October 2020.

FLEXIBLE FURLOUGH CHANGES

HMRC had previously announced that from 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the standard hours not worked. 

To be eligible for the grant in the period July to October employers must still pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed.

When the employee is working, the employer is responsible for their pay and a claim for these hours cannot be made under the CJRS.

From 1 August 2020, the level of grant will be reduced each month. Also, employers will no longer be able to make a claim under the CJRS for the employer Class 1 NIC contributions or the associated pension employer contributions to the employee’s pension scheme. Employers must now bear these costs themselves.

The timetable for changes to the scheme is set out below. Wage caps are proportional to the hours an employee is furloughed. For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours:

flexible furlough

 

There are no changes to grant levels in June.

  • For June and July, the government will pay 80% of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work.

  • For August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.
  • For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed​.

  • For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.
The table shows Government contribution, required employer contribution and amount employee receives where the employee is furloughed 100% of the time.

Wage caps are proportional to the hours not worked.


Why Choosing the Right Insurance Matters for Fencing Contractors
Why Choosing the Right Insurance Matters for Fencing Contractors

Rhino Trade Insurance 17 July 2024

As a fencing contractor in the UK, insurance is an important area of protecting your trade business and ensuring its long-term success. In this post, we'll explore why choosing the right insurance matters for fencing contractors and how it can safeguard your livelihood.

Read more

How to Get Positive Reviews for Your Trade Business
How to Get Positive Reviews for Your Trade Business

Rhino Trade Insurance 16 July 2024

In this blog post, we'll explore practical strategies to garner positive reviews and discuss how these can transform your trade business. Additionally, we'll touch on the types of trade insurance available and why Rhino Trade Insurance is a top choice for your coverage needs.

Read more

How to Effectively Deal with Customer Complaints as a Tradesman
How to Effectively Deal with Customer Complaints as a Tradesman

Rhino Trade Insurance 15 July 2024

Here's a comprehensive guide on how to effectively deal with customer complaints as a tradesman (or woman). 

Read more

Get an Instant Quote

Tell us your trade and get a tailored insurance quote for your business in seconds

TALK TO AN EXPERT

Our team of experts are available to talk to Mon-Fri 08.30-17.30 and Sat 10.00-14.00

online chat

Online Chat

Our team are online during office hours. Send a message if you have a query.

call

Call

Call our team of experts during the office hours noted above.

Form

Not ready to talk?

No problem. Fill in our quick form and let us know when’s a good time for you.