COVID-19 update: further details regarding furloughing

 In Analysis, Information, Tax

This is relevant to all clients who have a payroll. Even if we do not process your payroll, we suggest you check this point with your payroll software provider.

 

According to HMRC, if you have more than one job, you can be furloughed for one of your jobs but work normally in your other jobs.

This seems to me to suggest that you can be furloughed by your company and claim the Government help to pay your salary, and get a job somewhere else and be paid normally by that other job at the same time. If you do so, we suggest that you let us know as soon as possible how much you will be earning in the other job so that we can advise how it may affect your tax.

If you have employees and their pay varies, then you can claim the same month’s earnings from last year or the average monthly earnings from the 2019/20 tax year, whichever is the higher. If the employee has been employed for less than 12 months, then you claim for 80 per cent of their average earnings since they started work.

Otherwise, as a normal rule, the claim will be for 80 per cent of the February 2020 salary.

The minimum furlough period is 3 consecutive weeks. If you or your staff do any work for the business to earn it any money, you have to come off furlough. You can go back onto furlough when you stop work.

If you have employees on fixed term contracts, then it is OK to renew or extend their contracts during the furlough period.

Finally, we recommend that, if you have not already enrolled for PAYE online with HMRC, that you do so now.

Should any questions arise please call.

We hope that all of you are keeping as well as possible.

– By Stephen Handley, FCCA

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