As new updates and changes to the UK Furlough Scheme, also know as the Coronavirus Job Retention Scheme, were announced a couple of weeks ago, here we outline everything you need to know along with key dates:
- The scheme will close to anyone who hasn’t been furloughed for 3 weeks by 30 June, so employers will only be able to claim for employees after that if they have been furloughed for a full three-week period at any time before the end of June.
- If employers intend to furlough an employee who hasn’t been furloughed before, they will need to agree that with them and start their period of furlough on or before 10 June – this is the last day on which someone who has never been furloughed before can start a period of furlough and qualify for the scheme – this ensures the minimum three-week period is complete by 30 June.
- Employers will then have until 31 July to make a claim for any periods of furlough up until 30 June – this applies to both employees furloughed for the first time and those who have previously been furloughed and claimed for.
- The rules of the scheme are changing from 1 July.
- On 12 June, HMRC will publish full guidance on all the scheme changes on their website. activpayroll will of course also communicate all the necessary changes after 12th June.
- From 1 July, employers will have the flexibility to bring previously furloughed employees back to work part time, employers can decide the hours and shift patterns employees work to suit the needs of their business. Employers will pay their wages for the time they’re in work and can apply for a scheme grant to cover any of their normal hours they are still furloughed for.
- For periods starting on or after the 1 July, the maximum number of employees that employers can claim for in any period cannot be higher than the maximum number they have claimed for in a previous period. For example, if an employers’ highest single claim for periods up to 30 June was for 100 people, they can’t claim for more than this number in later periods.
- From 1 August, employers will need to contribute towards the wage costs of their furloughed employees until the scheme ends on 31 October.
How to change claims if you have over-claimed
If you have made an error in a CJRS claim that means you received too much money, this must be paid back to HMRC.
HMRC have updated the application system so employers can communicate to them if they have over-claimed in a previous claim. When you apply you’ll be asked if you need to reduce the amount to take account of a previous error. Your new claim amount will be reduced to reflect this and a record of this adjustment should be kept for six years.
If you have made an error in a CJRS claim and do not plan to submit further claims, HMRC are working on a process that will allow you to let them know about your error and pay back any amounts that you have over-claimed.
If you are struggling with CJRS calculations, or any aspect of the UK’s furlough scheme, activpayroll is here to help. Please contact our dedicated Audit & Compliance Manager Simon Wright via email firstname.lastname@example.org.