Coronavirus Job Retention Scheme and Furloughing: New Key Guidance Points

April 15, 2020

 

On 9 April 2020, HMRC published further guidance in order to assist employers with the Coronavirus Job Retention Scheme (CJRS).

The scheme was put in place for 3 months, but it may be extended if necessary, in order to support employers during the COVID-19 crisis. Employers can furlough employees and apply for a grant that covers 80% of their normal monthly pay, reclaiming up to a maximum of £2,500 per month per employee. In addition, employers can claim their NI contributions and statutory pension contributions on the furloughed pay amount.

Three key points clarified in the new guidance:

  1. Employers are entitled to furlough employees who are being shielded or off on long-term sick leave. Employers are also entitled to switch employees from sick pay to furlough leave and vice versa. However, this should not be abused to top up Statutory Sick Pay.

  2. The Government has confirmed that employers are entitled to claim under the CJRS in respect of employees of a previous business transferred after 28 February 2020* if either the TUPE or PAYE business succession rules apply to the change in ownership.

  3. Employees with certain work visas are entitled to receive funds under the CJRS, without being in breach of their visa conditions.

Additional points of clarification include:

  1. The reclaimable NI and pension elements are on the furlough salary, as opposed to normal salary.

  2. Employees cannot work for the employer OR organisations linked to the employer whilst they are on furlough leave.

  3. Employers cannot use the reclaimed grant to fund benefits; all of the money must be paid to the employee with no deductions for payments such as fees or administration charges.  

HMRC also announced that the online claims portal for the Scheme is due to open on 20 April 2020. It is HMRC’s aim for employers to be paid the first furlough payments 4 to 6 working days after submission of their claim.

For the full guidance on the CJRS, please visit: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

*On 15 April 2020, the qualifying date changed from 28 February to 19 March 2020.

 

 

Contact Our Team
Catherine Burke
Partner
View Profile
Damian Phillips
Partner
View Profile
Fflur Jones
Managing Partner
View Profile
Gareth Wedge
Partner
View Profile
Mark Rostron
Partner
View Profile
Owen John
Partner
View Profile
Rhodri Lewis
Partner
View Profile
Stephen Thompson
Partner
View Profile

I have worked with Darwin Gray for a number of years and the level of service, professionalism and timely response is second to none. I would highly recommend Darwin Gray to any business.”

Becs Beslee, Dice FM Ltd

Darwin Gray have provided us with a first-class service for many years now. They really take the time to understand our business and develop relationships which results in advice and support that is contextualised and effective.”

Rebecca Cooper, ACT Training

We have worked with Darwin Gray for several years and have always found their services and advice to be first class.”

Karen Gale, Stepping Stones Group

An extremely professional and sincere company who make time for your queries and understand the need to break down certain facts and information to ensure everything is understood perfectly. I would highly recommend the company to anyone looking for any type of legal advice”

Gwawr Booth, Portal Training Ltd

PSS has worked with Darwin Gray for many years. We have always received an excellent service. Prompt and professional advice and support.”

Ledia Shabani, Property Support Services UK Ltd

We have used several departments within DG recently and we have been very pleased with an effective, efficient and down to earth service. Very happy thus far and I expect that we will continue to use DG.”

Guto Bebb, Farmers’ Union of Wales

Darwin Gray offer us truly superb services. Very professional, quick and services available bilingually which is very important to us, highly recommend.”

Iwan Hywel, Mentrau Iaith Cymru

My “go to” in urgent and time sensitive cases for direction, support and advice. The team are quick to respond to calls or emails for advice and support on all matters. Always explain complex matters in a way a lay person can easily understand.”

Margot Adams, Guarding UK Ltd