HMRC Guidance Updates
HMRC have updated the following guidance to include the changes announced in the budget. We advise clients to familiarise themselves with the changes, some of the important points are below.
Calculation guidance will be updated at a later date and we will bring that to you when it is available.
Changes To Grant Levels
Where the employee is furloughed 100% of time the government contribution will be as follows. Wage caps are proportional to the hours not worked.
May & June = 80% up to £2,500.00
July = 70% up to £2,187.50
August & September = 60% up to £1,875.00
Employer Contribution for hours not worked
May & June = Nil
July = 10% up to £312.50
August & September = 20% up to £625.00
Employees must be paid at least 80% of pay for hours not worked. Companies can choose to top this up at their own expense.
Employees continue to pay tax and NI on furloughed pay.
Employers continue to be liable for all Employer NI and Employer Pension costs.
Employees You Can Claim For
For periods ending on or before 30 April 2021 you can claim for employees who were employed on 30th October 2020 as long as they were included on an RTI submission between 20th March 2020 and 30th October 2020. (or they stopped working for you on or after 23rd September 2020 and you have subsequently re-employed them). You do not need to have previously claimed for an employee before 30th October 2020 to claim.
For periods starting on or after 1st May 2021 you can claim for employees who were employed on 2nd March 2021 as long as they were included on an RTI submission between 20th March 2020 and 2nd March 2021. You do not need to have previously claimed for an employee before 2nd March 2021 to claim on or after 1st May 2021.