FURLOUGH SCHEME EXTENSIONS
The Chancellor has extended the Government's Coronavirus Job Retention Scheme to the end of June 2020.
It will then be monitored "to ensure people and businesses can get back to work as soon as it's safe to do so to drive UK economic recovery"
EMPLOYEES THAT JOINED A FIRM AFTER 28 FEBRUARY CAN NOW BE FURLOUGHED
To benefit, if you joined a firm after 28th February, you must have been on the payroll before or on March 19th.
To qualify and to protect against fraudulent claims, individuals originally had to be employed on 28th February 2020 (as payments can be backdated to 1st March).
Following a review of the delivery system and to ensure the scheme helps as many people as possible, new guidance published today has confirmed the eligibility date has been extended to 19th March 2020– ie the day before the scheme was announced.
Employers can therefore 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.
I know this will help a few people locally. It’s also good for us to see the Treasury adapting where possible when we raise issues & people campaign.
Briefly, the aim of the furlough scheme is to help employers to keep people attached to their jobs and to preserve the economy as much as possible during this crisis. We want as many employees and businesses as possible able to recover from this unforeseen and difficult time.
Under the scheme employers can claim a grant covering 80% of the wages for a furloughed employee, subject to a cap of £2,500 a month.
While no government scheme can meet every need in this global crisis, I am pleased that many businesses in Stroud, the Valleys and Vale have taken the option to furlough staff.
I’ll let you know if there are any other updates and we are always in touch with the government departments on behalf of local people so keep telling me what is going on here or privately by email.
With Kind Regards