UPDATE on coronavirus (COVID-19) Job Retention Scheme

On the 4th April 2020 the Government updated their published guidance on claiming for wage costs through the Coronavirus Job Retention Scheme, known as the Furlough Scheme.

Below is an overview of the updates,  you must also read the Governments full guidance, which can be found  here, to ensure you have all the relevant information, as these points on their own, will not be enough.

NEW in the update – Employers must notify employees of their furlough status in writing, and keep the record of the written notification for five years.

It has been CLARIFIED:

• Employees can start a new job when on furlough.  This means the employee might end up earning 80% of their old salary and 100% of the new one.

• Employers can reclaim 80% of compulsory commission back from HMRC, as well as basic salary.

• The 80% does not included non-monetary benefits (e.g. a car or the value of health insurance).

• Company Directors can be furloughed, and they are able to still perform their statutory duties, but they are not able to carry out other work for the company.

It has been confirmed that employees can be furloughed multiple times, e.g. they can be furloughed, brought back to work, then re-furloughed.  This is subject to each furlough period at least three weeks.

Employers can now reclaim 80% of fees from the HMRC, in the previous guidance it said they could not.