Further details of how flexible furloughing will work were announced on Friday 12 June 2020. This is the next and apparently last stage of the Coronavirus Job Retention Scheme.
The introduction of flexible furlough allows for part time working from July, a month earlier than expected, but it also means there will be a tapered reduction to the amount of Government contribution from August to the end of the Scheme on 31 October 2020. It also ends the employer’s ability to place new employees on furlough after 10 June 2020 for the first time with the important exception of employees returning from periods of statutory maternity leave or similar.
The revised Treasury Direction that covers how the scheme will work until the end of June 2020 will need to be further updated to take account of these changes.
For a short guide to frequently asked questions on the changes to the scheme please click here.
This document is a comprehensive FAQ on the scheme incorporating the changes effective from 1 July.
For guidance on collective consultation and HR1 issues please click here.
What will need to be submitted to HMRC?
The Guidance states that you will need:
- to be registered for PAYE online
- your UK bank account number and sort code (only provide bank account details where a BACS payment can be accepted)
- the billing address on your bank account (this is the address on your bank statements)
- your employer PAYE scheme reference number
- the number of employees being furloughed
- each employee’s National Insurance number (you will need to search for their number if you do not have it or contact HMRC if your employee does not have a number)
- each employee’s payroll or employee number (optional)
- the start date and end date of the claim
- the full amounts that you’re claiming for
- your phone number and contact name
You also need to provide either:
- your Corporation Tax unique taxpayer reference
- your Self-Assessment unique taxpayer reference
- your company registration number
If you’re claiming for employees who are flexibly furloughed, you’ll need to have agreed the furlough arrangement with the employee (or reached a collective agreement with a trade union) and keep a written agreement that confirms the furlough arrangement.
For the claim period you’ll also need:
- the number of usual hours your employee would work in the claim period
- the number of hours your employee has or will work in the claim period
- you will also need to keep a record of the number of furloughed hours your employee has been furloughed in the claim period
For more information regarding the updated guidance to the Job Retention Scheme contact our expert listed below and for more information regarding COVID-19 visit our Coronavirus hub.
This article was originally published on 8 April 2020, it was last updated on 22 June 2020.