Government extends the Job Retention Scheme
Michael Chadwick, founding Director at Chadwick & Company, gives further details about the extension to the Job Retention Scheme.
The Chancellor has announced that the current furlough scheme where employers can claim up to 80% of employees salaries, will continue until the end of October 2020.
Adding some flexibility, employers will shortly be allowed to bring back furloughed workers on a part-time basis, as offices and factories work towards normal levels of activity. More details on this are due at the end of May, however it is expected that employers themselves may have to contribute towards furloughed employees wages.
The chancellor also dismissed rumours that the furlough subsidy would immediately reduce to 60%. He confirmed that there would be no changes to the scheme until the end of July, including maintaining the 80% contribution plus covering employer national insurance and pension liabilities.
The furlough scheme extension will mean that the Government has provided a total of eight months support to UK businesses during the pandemic, with 7.5 million jobs being furloughed.
Information needed to claim
The information required to make a claim is as follows:
- your ePAYE reference number
- the number of employees being furloughed
- the claim period (start and end date)
- amount claimed (per the minimum length of furloughing of three consecutive weeks)
- your bank account number and sort code
- your contact name
- your phone number
Calculating your claim
We will assist in calculating the amount of your claim, but HMRC retain the right to retrospectively audit all aspects of your submission.
Claims can be backdated until 1 March, where employees have already been furloughed.
If you intend to only pay the furlough wage of 80%, you should ensure your payroll operator reduces the gross pay. This adjustment will not be made by HMRC.
Here at Chadwick & Company, the process will be operated and monitored by James Chadwick, who will liaise with our Payroll Department where necessary.