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Furlough FAQ's & Business Rates grant Featured

Furlough FAQ's & Business Rates grant Furlough FAQ's & Business Rates grant

Business Rates grant

The application for Business Rates grant for Leicester City Council is now open. It's very simple; just click the link (below), fill in your details, attach the Business Rates statement, photo ID & bank statement and click submit! For other cities/boroughs, please speak to us if you're not sure.

Furlough scheme FAQ's
Company Directors

As office holders, salaried company directors are eligible to be furloughed and receive support through this scheme.

furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so provided they do no more than would reasonably be judged necessary for that purpose, i.e. they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.

Written Furlough Agreements

Employers must have signed written agreements of
furlough leave with employees and these must be kept for 5 years. Our previous email included the draft letter you can send to your employees.

Deferred Payments

As the first
CJRS refunds are not expected until 30 April 2020, this may put enormous pressure on those businesses who are operating with very limited cash flow. If your business is struggling to pay your staff, we advise you to have open and honest conversations with your employees as soon as possible, to ask if you can defer payments. Our previous email included the draft letter you can send to your employees. If you genuinely require to defer their payments, you will need to add a clause for deferred salary payments. Speak to us if you're not sure how to do this.

Holiday Accrued During Furlough and Sick Leave

Although the
employee is not working, the terms of employment will continue and they will continue to accrue holiday during both furlough and sick leave.

Holiday Pay For Furlough

HMRC have confirmed it is possible to take annual leave when on furlough and that it must be paid at full pay. For a furloughed employee on annual leave, the employer can recover 80% of the employees basic salary through the CJRS, but the employer will need to top that up to 100% of normal remuneration including commission and bonuses.

Bank Holidays

Following the recent Easter bank holiday, when
bank holidays fall during a period of furlough leave and the contract states annual holiday must be taken on a bank holiday, the employee should receive full pay for the bank holiday.

If an
employee doesn’t work on a bank holiday (e.g. a part-timer who doesn’t work a Monday for example), there will be no impact on them due to the bank holiday.  They will not be required to use holiday entitlement and of course won’t be paid for this day.

Statutory Sick Pay for Furlough

Sick leave and furlough leave cannot be taken at the same time. If an employee is on sick leave, they can be furloughed once their period of isolation has expired and immediately furloughed. The CJRS cannot be used to supplement SSP for employees who are off sick with coronavirus or are in self-isolation in line with government guidelines.

Furlough Employees Self-Isolating for 12 Weeks

Employees who have been advised to self-isolate for 12 weeks and require shielding (due to serious health conditions) can be furloughed and do not have to be placed on sick pay.

Employees whose pay varies

If the employee has been employed for 12 months or more, you can claim the highest of either the:

  • same month’s earning from the previous year
  • average monthly earnings for the 2019-2020 tax year

If the employee has been employed for less than 12 months, claim for 80% of their average monthly earnings since they started work until the date they are furloughed.

If they have been employed for less than a month, work out a pro rata for their earnings so far, and claim for 80%.

Furlough scheme cut-off date extended to 19 March

Eligibility cut-off date for extended to 19 March 2020. To qualify and to protect against fraudulent claims, individuals originally had to be employed on February 28 2020. Now employers can claim for furloughed employees that were employed and on their PAYE payroll on or before 19 March 2020. This means that the employee must have been notified to HMRC through an RTI submission notifying payment in respect of that employee on or before 19 March 2020.

Read 277 times Last modified on Saturday, 18 April 2020 09:18
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