Rochdale BID want to keep you updated with the latest news, information and advice during the coronavirus (COVID-19) pandemic. Please check our website daily for more updates for businesses and website individuals.
Furlough staff – new cut off date and instructions
The new cut off date for furlough scheme is 19th March (replacing 28th Feb). So if any employees were on PAYE payroll on 19th March they can be furloughed.
More details can be found here:
https://www.gov.uk/government/news/furlough-scheme-cut-off-date-extended-to-19-march
In addition, The Treasury has issued a Direction to HMRC under powers conferred by the Coronavirus Act 2020, containing authority and instructions for making payments under the Coronavirus Job Retention Scheme. Although amendments are possible, it is likely to be the definitive guidance on how the Job Retention Scheme works. A summary of the instructions are set out below:
- The Scheme is not limited to those employees who would otherwise be made redundant. It is applies to any who are furloughed "by reason of circumstances as a result of coronavirus or coronavirus disease" (para 6.1(c)).
- A director who is furloughed can only undertake work to fulfil a duty or other obligation arising from an Act of Parliament relating to the filing of company's accounts or provision of other information relating to the administration of the director's company (para 6.6).
- To claim furlough, the employer and employee must have agreed in writing that the employee will cease all work (para 6.7). This is significant; the guidance only required notification.
- The amount of salary for the employee must disregard anything which is not "regular salary or wages". That includes disregarding any performance related bonus or discretionary payments (including tips), any conditional payments (eg where a threshhold must be met) and any non-financial benefits (paras 7.3 - 7.5).
- The employer cannot claim for any salary which is "conditional on any matter" (para 7.4(b)).
- The employer can claim for earnings which it "reasonably expects to be paid" to the employee (para 8.1(a)).
Full details of the Direction can be found here:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/8 79484/200414_CJRS_DIRECTION_-_33_FINAL_Signed.pdf
Useful Links
UK Government – Coronavirus: latest information and advice
UK Government - COVID-19: guidance for employers and businesses
UK Government – Coronavirus business support
National Health Service - Coronavirus (COVID-19)
Acas – Coronavirus advice for employers and employees
World Health Organization – Getting your workplace ready for COVID-19
If you have any queries regarding the support which his currently being offered, please don’t hesitate to contact me on 07811 278517.
Paul Ambrose
BID Manager
15 Apr 2020