As announced by the government on the 31st October 2020, the furlough scheme has been extended until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Businesses will have flexibility to either bring furloughed employees back to work on a part time basis or furlough them full-time and will only be asked to cover National Insurance and employer pension contributions. All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS.

Employees – To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020. Employers can claim the grant for the hours their employees are not working. For worked hours, employees will be paid by their employer as normal and employers will be responsible for paying the tax and NIC’s due on those amounts. Employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.

If you would like to discuss this further or have us claim this on your behalf please contact Dolapo on d.ayeni@mphaccountants.co.uk

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