The Furlough scheme also known as the governments coronavirus job retention scheme (CJRS).
If you have employees and need to governments help with supporting and subsidising wages during the coronavirus pandemic you may be eligible for the governments furlough scheme.
From April 20th the scheme will be open to businesses to apply, the scheme is designed to help business retain staff members and support staff with the financial difficulties from covid 19.
It is expected that up to 11.7 million people could be furloughed over the next three months.
Can an employee apply for furlough?
Only businesses with staff members who were on the payroll on or before 19th March may be eligible for furlough, if you believe you are eligible you will need to speak to your employers to find out if they have applied for the job retention scheme.
How much will I get on furlough?
You will receive as much as 80% of your current monthly earnings or a maximum of £2,500 per month, your employer is not required to top up the 20% shortfall.
You will still be liable to pay relevant taxes on your award amount; Employers are still required to comply with sick and holiday pay.
If you started your employment after 19th March 2020 you will not be eligible for the furlough scheme.
When will I receive the furlough payment?
Dependant on when your employer applies for the furlough scheme, six working days after the application has been made or on 30th April 2020.
The scheme is scheduled to run until the end of June and may be extended depending on the current circumstances.
Can my business claim furlough for employees?
To be eligible to make a claim for your employee’s you must have the following information
- You must be registered for PAYE online
- Bank account number and sort code (UK only)
- Your PAYE reference number
- Employees details (National insurance number)
- Company registration number
- Corporation Tax reference
You do not have to be the business owner to make a claim for the job retention scheme (furlough). You can use an agent who is authorized to act on your company behalf.