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By LegalEdge News

Extended Furlough Scheme – update to guidance


Following our previous blog announcing the extended furlough scheme the government has now released updated guidance – we’ve summarised some key points below:

  • The extended scheme will run from 1st Nov 2020 until 31st March 2021, with details announced for the period until 31st January. The level of support available to businesses will be reviewed in January and any changes for February onwards will be published in updated guidance.
  • Any employees who were employed and on the payroll on 23 September but who were made redundant or “stopped working” for their employer on or after that date can be “re-employed” and claimed for, providing that the employer made a RTI submission to HMRC between 20th March to 30th October 2020.
  • The Treasury has confirmed that, for a claim period from 1st December onwards, you cannot claim for a furloughed employee who is serving a statutory or contractual notice period.
  • The extended furlough scheme applies to new employers of employees who have been TUPED to them provided they were:
    • transferred from their old to their new employer on or after 1 September 2020
    • employed by either their old or new employer on 30 October 2020
    • included on a RTI submission notifying their earnings to HMRC, by their old or new employer, between 20 March and 30 October 2020
  • There is no longer any formal concept of “shielding” due to coronavirus. The guidance now refers to those who are unable to work because they are ‘clinically extremely vulnerable, or at the highest risk of severe illness from coronavirus and following public health guidance’. 
  • HMRC will be publishing the names, registration numbers of and the amount of CJRS claims made by any companies who have made claims under the Scheme for the month of December onwards. It is thought they hope this will encourage any employees to report employers who are abusing the scheme.

The government has also released 10 updated guidance documents for employers::

  1. Claim for wages through the CJRS
  2. Check which employees you can put on furlough to use the CJRS
  3. Check if you can claim for your employees’ wages through the CJRS
  4. Calculate how much you can claim using the CJRS
  5. Steps to take before calculating your claim using the CJRS
  6. Reporting employees’ wages to HMRC when you’ve claimed through the CJRS
  7. Examples of how to calculate your employees’ wages, National Insurance contributions and pension contributions
  8. Full examples of how to calculate the amount you should claim for an employee who is flexibly furloughed
  9. Pay CJRS grants back
  10. Check if your employer can use the CJRS

As always, if you have any questions or need help with any of the above please get in touch. We’re here to help.

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