Important update on the Coronavirus Job Retention Scheme
The latest update on the Coronavirus Job Retention Scheme (“the Scheme”) confirms that employees who were employed on or before 19th March 2020 are eligible to be furloughed. Previously, those employed since 1st March 2020 did not fall under the Scheme.
This is provided that the employer had submitted real time information payroll data in respect of that employee to HMRC on or before 19th March 2020.
In respect of TUPE transfers, a new employer is eligible to claim under the Scheme in respect of employees of a previous business transferred after 19th March 2020 if either the TUPE or PAYE business succession rules apply to the change in ownership.
What difference does this change make?
The update will make a difference for salaried employees whose pay day is on or before 19th March. The guidance states that their employers can claim for 80% of the employee’s salary as in their last pay period prior to 19th March. It will also make a difference for weekly paid employees who will have been included on the real time information submission prior to 19th March.
The update will not have a large impact on numerous businesses where their employees are paid monthly and where their pay date is at the end of the month (i.e. after the 19th March).
To review the guidance on the Scheme, please click here.