Furlough changes from July 2020
Furlough changes from July 2020
More information on forthcoming changes

As promised, the government has released more information on forthcoming changes to the furlough scheme aimed at reducing the Government’s burden and getting businesses open again:

From 1 July

  • It will be possible to part furlough employees.
  • Claim periods will no longer be able to overlap
  • Claims can be based on hours worked (further guidance on this is yet to be released)
  • The maximum amount of staff that can be included on a claim will be limited to the maximum number o f staff that were included on a pre-July claim.

From 1 August

  • The amount that the government will pay is reducing to 70%. Employers must fund the remaining 10%.
  • The minimum furlough period is reducing to 1 week.
  • Furlough claims will no longer include Employer National Insurance nor pension contributions

From 1 September

  • There is a further reduction in government contribution to 60%. Employers must fund 20%.

To be eligible for furlough under the new scheme (starting 1 July), an employee must have been furloughed under the old scheme (between 1 March and 30 June)

Where employees are furlough part-time, the amount that can be claimed is only based on their furlough time.The employer is expected to pay them in full whilst they are at work.

More guidance is due to be released by HMRC on 12 June 2020.

Simon Vincent
By Simon Vincent Senior Tax Accountant
If you have any questions or comments about this article, please get in touch.
Call Now Button