Furloughed Workers

[Mr D]

Do we know when the refunds will start to hit the accounts?

I can't see how businesses that pay weekly can continue to do so until the end of April if income is zero (pubs, restaurants etc). All very well saying keep paying the staff ready for the upsurge but if the cash isn't there they just aren't going to get paid.

The official line is end of April. Would not be surprising if that went into May.
HMRC will be doing a lot of payments and mistakes can happen.

 

[The Soup Dragon]

Does anyone have a standard furlough template / letter that they can share?

 

[Awinner2]

WARNING from bitter personal experience, if your bank requires personal guarantees for a new loan, secured on assets or property including your own home DO NOT DO IT. Not going into details but this caught me out during the 90s recession and it can ruin you forever.

 

[webadvertiser]

More on the Job Retention Scheme to be published tonight according to Rishu Sunak at 5pm today. We should know more shortly on the ins and outs

 

[webadvertiser]

Check if you could be covered by the Coronavirus Job Retention Scheme - Gov UK site (sorry can't post links) under -
/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

 

[UKSBD]

will HMRC use the PAYE figures that are put on the system (presumably). Son has a good salary but low compared to his gross pay due to being a very high commission earner. Don't get me wrong, he and his partner can pay their mortgage and live ok on 2 x £2500 a month but this is about 40% of their normal income.

"Bonuses, commissions and fees are not included as part of your monthly earnings."

source: https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

 

[Mr D]

"Bonuses, commissions and fees are not included as part of your monthly earnings."

source: https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

That could be of concern to those on commission only or low base plus commission.
Perhaps such pay will be less attractive in recruiting in future?

 

[qqcs]

If the payroll is 20k and you have no work you furlough your employees and your payroll billis either 0 or 4k. Most companies pay monthly and should have had March payroll covered anyway, if not the banks should agree an overdraft. the furlough scheme is supposed to be running by end April. I don't understand your comments.

March payrol not covered, we struggled in last 12 months doing zero profit lot of order we already starzed to reoganize the company. 20k overdraft available with personal guarantee. If I use to pay the salary in advance then hmrc think somehow not paying us I am staying in 20k debt and all employee getting redundancy, holiday pay notice pay etc. Me almost nothing because I am taking 700 minimal salary every second month which was bad decision, I know now

 

[JosDH]

Have we had confirmation on how to register someone as a furloughed employee ?

 

[Awinner2]

"Bonuses, commissions and fees are not included as part of your monthly earnings."

source: https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

I have to disagree with your post. The Gov page that you refer to DOES NOT include the words that you used ref: bonuses and commissions. it clearly says
"How much you’ll get
Your employer will get a grant to cover 80% of your monthly earnings, up to a maximum of £2,500. Firms will be eligible for the grant once you have been furloughed, from 1 March. Your employer:

will pay you at least 80% of your usual monthly earnings, up to a maximum of £2,500, as your wage
can claim for a minimum of 3 weeks and for up to 3 months - but this may be extended
can choose to pay you more than the grant - but they do not have to
You’ll still pay Income Tax, National Insurance contributions and any other deductions from your wage."

 

[Newchodge]

Not yet

Have we had confirmation on how to register someone as a furloughed employee ?

 

[Newchodge]

I have to disagree with your post. The Gov page that you refer to DOES NOT include the words that you used ref: bonuses and commissions. it clearly says
"How much you’ll get
Your employer will get a grant to cover 80% of your monthly earnings, up to a maximum of £2,500. Firms will be eligible for the grant once you have been furloughed, from 1 March. Your employer:

will pay you at least 80% of your usual monthly earnings, up to a maximum of £2,500, as your wage
can claim for a minimum of 3 weeks and for up to 3 months - but this may be extended
can choose to pay you more than the grant - but they do not have to
You’ll still pay Income Tax, National Insurance contributions and any other deductions from your wage."

But the guidance for employers states:
For full time and part time salaried employees, the employee’s actual salary before tax, as of 28 February should be used to calculate the 80%. Fees, commission and bonuses should not be included.

 

[Awinner2]

Have we had confirmation on how to register someone as a furloughed employee ?

All info here: https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

 

[Awinner2]

But the guidance for employers states:
For full time and part time salaried employees, the employee’s actual salary before tax, as of 28 February should be used to calculate the 80%. Fees, commission and bonuses should not be included.

Typical of Gov to cause even more confusion!!! But the page given by the poster does say to the contrary. Back to my morning coffee!!

 

[ecommerce84]

@Awinner2 it definitely does say what @UKSBD quoted.

It’s the last sentence under the heading:

‘How your monthly earnings are calculated‘

 

[Newchodge]

Typical of Gov to cause even more confusion!!!

It would certainly be useful if the guidance for employers matched the guidance for employees. Especially if, as now looks likely, there are no regulations produced.

In addition the employer guidance on how to calculate the amount for employees whose income varies does not, actually, exclude fees, commission or bonus!

 

[Awinner2]

@Awinner2 it definitely does say what @UKSBD quoted.

It’s the last sentence under the heading:

‘How your monthly earnings are calculated‘

Got it now so thanks. Very difficult to spot when the text all the way through refers to "earnings" which is what PAYE works on but hides the real meat of the calculation!

 

[Awinner2]

It would certainly be useful if the guidance for employers matched the guidance for employees. Especially if, as now looks likely, there are no regulations produced.

In addition the employer guidance on how to calculate the amount for employees whose income varies does not, actually, exclude fees, commission or bonus!

Brilliant!

 

[ecommerce84]

Got it now so thanks. Very difficult to spot when the text all the way through refers to "earnings" which is what PAYE works on but hides the real meat of the calculation!

Yes, a lot of the CV-19 advice reads a bit like someone’s coursework who has belted through it on the evening before it’s due to be handed in!

 

[Awinner2]

"Bonuses, commissions and fees are not included as part of your monthly earnings."

source: https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

Sorry for my negative reply but as others have posted the Gov information is all over the place.

 

[fisicx]

Thread closed. All furlough questions should be asked here:

https://www.ukbusinessforums.co.uk/threads/furlough-latest-guidance.404842/