Yesterday the Treasury released their direction to HMRC regarding its authority to make payments to employers for the remuneration of furloughed workers. Please take note of the following changes to earlier guidance:
• Employees who were on your payroll on 19th March 2020 and who were paid by that date will be eligible for furlough. The scheme was previously limited to those on your payroll on 28th February.
• In order to be classed as furloughed the employer and employee must have agreed in writing that the employee will cease all work related to their employment. If you have notified employees that they are furloughed but have not sought their agreement, please do so as soon as possible.
• Agreement may be obtained via email; we advise that any such emails include express wording to demonstrate your employees are aware of what they are agreeing to. We are happy to draft a declaration for your use.
• You may claim for earnings that have already been paid and those which are reasonably expected to be payable. This will allow you to claim for earnings that would become payable whilst the application is considered.
• You may not claim salary which is “conditional on any matter”. This may prevent you from claiming earnings that are conditional on your acceptance to the scheme itself.
Recommended steps and how to apply
If you have less than 100 staff, you will need to input all details separately. If you have more than 100 staff, you will be asked to upload a file containing the necessary information (as contained within our last update).
It is recommended that you make your claim shortly before or during running payroll.
We will continue to update you on any further changes, as ever if you have any questions please contact us.