As employers will now know, the Coronavirus Job Retention Scheme (CJRS) may be accessed by all employers who had a PAYE payroll scheme on or before 28 February 2020. As time goes on, elements of the CJRS are being clarified or amended. This blog summarises the key clarifications made this weekend:
- Employers need to have enrolled for PAYE online which can take up to 10 days to do and they must also have a U.K bank account into which the subsidy can be paid. They must keep a record of the agreed furlough status for HMRC inspection for 5 years.
- During furlough, furloughed employees cannot undertake work for the employer that furloughed them.
- If you made employees redundant on or before 28/2/20 or they stopped working for you on or after 28/2/20 for other reasons, you can re-employ them and put them on furlough status.
- When employees who have been absent due to ill health or who have been self-isolating come off S.S.P they may be furloughed.
- Shielding employees may be furloughed as may those with caring responsibilities.
- Office holders such as company directors can be furloughed subject to proper adoption of their status by the business.
- Agency employees, nannies & cleaners paid through PAYE, and those employed through umbrella Companies may be furloughed as may “Limb B” workers if they are paid through PAYE (See also the Self Employed Income Support Scheme – SEISS).
- Past overtime, fees, compulsory commission payments can be claimed within the 80% or £2,500pcm but discretionary bonus and commission payments and tips and other non-cash payments should be excluded. Benefits in kind and benefits through salary sacrifice schemes including pension contributions that reduce an employee’s non-taxable pay should not be included.
- The minimum period for any furlough period is 3 weeks and employees can be rotated in 3 week cohorts to share the furloughed time (3 weeks on 3 weeks off).
- Subject to their contracts employees may work for different employers whilst on furlough for another employer.
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