The Furlough Scheme has been extended until 31st March 2021. As of 1st November 2020, Employers can claim 80% of an employee’s usual salary for hours not worked up to a maximum of £2500 a month. This percentage however may be reviewed for February and March 2021.
The 30th November 2020 is the last day employers can submit or change claims for periods ending on or before 31st October 2020 and claims for Furlough pay for days in November 2020 must by submitted by no later than 14th December 2020.
For periods of furlough from 1st November 2020 onwards, employers can claim for employees who were employed by 30th October 2020 so long as the relevant PAYE RTI submission was made to HMRC between 20th March 2020 and 30th October 2020.
Points to note:
- Any agreement between employee/employer to furlough must be recorded in writing and kept for 5 years.
- Employees returning from maternity leave need to give the statutory eight weeks’ notice to end maternity leave early in order to be furloughed.
- Employers can claim even if they have not previously claimed under the scheme prior to 30th October 2020
- Employees who were included within payroll on 23rd September 2020 and who were made redundant or stopped working for the employer after that date can be reemployed and claimed for.
- Employers can claim for employees on any type of employment contract including full-time, part-time, agency, flexible or zero-hour contracts.
- Fixed-term contract employees can be claimed for and even have their contract extended or renewed. Even if the contract expired on or after 23rd September 2020, they can be re-employed and claimed for so long as a PAYE RTI submission was made for that employee to HMRC between 20th March 2020 and 30th October 2020.
- If an employee has more than one job, they can be furloughed from each role and the monthly cap of £2500 applies to each employer individually.
- An employer can continue to claim for a furloughed employee who is serving a statutory notice period (within a November 2020 claim period) however furlough pay cannot be used to subsidise redundancy payments. For claim periods starting on or after 1st December 2020, an employer cannot claim for days during which the furloughed employee was serving a contractual or statutory notice period for the employee.
What help can I get if I am self-employed?
The extended self-employment income support scheme provides further financial support to the self-employed in the form of two additional grants. These are available for three month stretches, covering November 2020- January 2021 and February 2021- April 2021. You must be prepared to declare than you will continue to trade or that you are unable to trade due to coronavirus restrictions.