The last few months may have felt like a relentless bombardment of information regarding the deadlines, requirements and availability of the various coronavirus support schemes - and it’s not over yet!
The latest announcement from the Government involves adaptations to the employee furlough scheme. With the clarification that employees can return from the furlough scheme on a part-time basis from 1st July 2020. This is earlier than previously predicted and means that employers can start to get business moving again.
The key points of the part time scheme are:
The hours undertaken by the employee will be paid by the employer
The government will continue to contribute 80% of the wages for the hours they do not work (up to £2,500, as well as ER NICs and pension contributions)
Arrangements must cover the MINIMUM of a 1week period
You will be expected to submit details of how many hours an employee would be expected to work in a claim period and how many were actually worked
If employees are still unable to work, they can remain on furlough and you can continue to claim the full 80%
The scheme will change again as the government element is slowly tapered:
August the government will continue to contribute 80% of the wages up to £2,500 for hours the employee doesn’t work but employers will pay ER NICs and pension contributions
September the government will contribute 70% of the wages up to £2,187.50 for hours the employee doesn’t work but employers will pay ER NICs, pension contributions and 10% of wages to make up to 80% (up to £2,500)
October the government will contribute 60% of the wages up to £1,875 for hours the employee doesn’t work but employers will pay ER NICs, pension contributions and 20% of wages to make up to 80% (up to £2,500)
(The cap on the furlough grant will be proportional to the hours not worked).
NIC bills vary due to employee size, smaller employers should not be significantly impacted by the tapering.
The final date you can furlough an employee for the first time will be 10th June
The furlough scheme will close to new applicants from 30th June. From this point onwards ONLY employees previously furloughed for a full three-week period prior to 30th June will be eligible.