MOORE Kingston Smith Help With Your Furlough Exit Strategy

Are you struggling to get your head around the furlough exit strategy?

Luckily our back of shirt partner MOORE Kingston Smith are perfectly positioned and highly knowledgeable about this subject.

Please see the below outline that they have shared with the club as we transition through this period, and they are keen to share with you too.

The rules covering the final three months of the Coronavirus Job Retention Scheme have finally been announced.

There are three key areas:

1. The amount of the grant will be reduced on a phased basis from 1 August as follows:

* – exact figures to be confirmed

2. The Job Retention Scheme will be closed to new entrants after 30 June

For an employee to be eligible for a grant under the job retention scheme from 1 July 2020, they must have been part of a claim for a furlough grant before 30 June.

As the minimum period which can be claimed is 3 weeks, the Chancellor has said that employees must be furloughed on or before 10 June 2020 to allow the 21 days to elapse before 30 June.

Employers will have until 31st July to make any claims in respect of the period to 30 June.

3. Employees who have been furloughed will be allowed to work part time from 1 July 2020

From 1 July, the requirement that employees provide no services to their employer or directly or indirectly generate income for their employer is removed.

Furloughed employees can return to work part time and their employer would pay them their normal salary for that period with the balance of days not worked being eligible for the furlough grant until 31 October.

Bear in mind that the furlough scheme being closed to new entrants from 1 July will limit those able to benefit from part time furloughing. To benefit from the flexible furlough scheme from 1 July employees must first have had three weeks of full time furlough carrying out no work whatsoever.

• claim periods will no longer be able to overlap months. Claims can either be for a part month or whole month but not straddle two consecutive months; an
• The number of employees an employer can claim for in any claim period cannot exceed the maximum number they have claimed for under any previous claim under the current CJRS

The Scheme until 30 June – A reminder…

While on furlough, they:

• Provide no services to their employer whatsoever
• Generate no income for their employer directly or indirectly
• Can carry out voluntary work or training
• Minimum period of furlough to entitle employer to grant is 3 consecutive weeks per employee – claims for less than this period will be rejected

Expect these conditions to be checked in future PAYE Compliance visits from HM Revenue & Customs.

Looking for more business tips?

The following three videos could be really helpful for you and your business.

The importance of wellbeing in the workplace

Returning to work

Navigating through the pandemic

Karen Wardell, Partner at MOORE Kingston Smith is on hand to support you and your businesses through this period, for further information please contact her:[email protected]