Flexible Furlough Update - July 2020
From today (1 July), you can claim a more flexible grant for any employee you have previously received a CJRS grant for, and who now returns to work on reduced hours. You can also continue to claim for employees who stay fully furloughed.
, which contains detailed guidance on eligibility and how to claim for flexibly furloughed employees.
- Claim for periods ending on or before 30, by 31 – this is the last date you can make those claims. .
- Agree the hours and shift patterns that you want your employees to work from 1 July
- Pay your employees’ wages for the time they’re in work and apply for a job retention scheme grant to cover the remainder of their usual hours for which they are still furloughed
- Claim for further furlough periods as needed – the first time you will be able to make a claim for days in July will be 1 July
HMRC’s live webinars offer more support on changes to the scheme and how they impact you, and can be booked online by . You can also watch HMRC’s informative YouTube videos from this page.
HMRC are advising to use their online resources rather than calling them for more information, to leave their phone lines open for those who need them most.
If you have overclaimed, all you need to do is tell HMRC when you next claim so you can pay it back. You will be asked when making your claim whether you need to adjust the amount to take account of a previous error. Your new claim amount will be reduced to reflect this. You do not need to take any other action but should keep a record of this adjustment for six years.
If you’ve made an error in a previous claim but do not plan to submit further claims, you need to contact HMRC to let them know, so that they can tell you how to repay the money.
HMRC have a new template to claim for periods starting on or after 1to ensure your claim is processed quickly and successfully, which you can download .
A condition of the CJRS grant is that you pay the related PAYE tax, NICs and pension contributions due on wages. Until 31July you can continue to claim these for the hours the employee is on furlough. From 1employers will no longer be able to claim for NICs and pension contributions.
If you think you may struggle to pay your PAYE tax and/or NICs from August, please contact HMRC as soon as possible, before they start action to recover the unpaid debt. They may be able to give you time to pay.
If you are unfurloughing staff, you must pay staff the new National Minimum Wage Rate that came into force on 1 April 2020. .
If you need further assistance with any aspect of unfurloughing staff, the IGA Member Helpline team is here to help via the direct member helpline, 0845 305 4230, or .