Businesses can claim to cover wages for employees on temporary leave (‘furlough’) due to coronavirus (COVID-19).
Her Majesty’s Revenue and Customs (HMRC) will reimburse 80% of the wages paid while furloughed up to £2500 per month. This includes the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. The payments were backdated to March 1st, for up to three months.
Qualifying Criteria:
- Full-time employees
- Part-time employees
- Employees on agency contracts
- Employees on flexible or zero-hour contracts
- Employees who have been made redundant since 29th February
- Directors including Directors of their own Personal Service Company (PSC)
- Salaried employees of Limited Liability Partnerships (LLP)
- Employees that are carrying out voluntary work providing they are not generating income for the body they are volunteering for.
It is important to note that any employee working (even if they are working elsewhere on a part time basis) is not eligible, even if they work greatly reduced hours or for less wages. However, a director who needs to carry out essential duties as mandated by statute is exempted if they carry out those essential duties only.