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Basis for salary if furloughed

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    Basis for salary if furloughed

    If I furlough myself, is the grant supposed to be based purely on February's PAYE, with no regard whatsoever for the average payment made over a typical personal or company tax year?

    #2
    Originally posted by ittony View Post
    If I furlough myself, is the grant supposed to be based purely on February's PAYE, with no regard whatsoever for the average payment made over a typical personal or company tax year?
    It's supposedly based over a 12 month period.
    merely at clientco for the entertainment

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      #3
      A nice full overview of what we know is here.

      The Coronavirus Job Retention Scheme: furlough guidance | ICAEW

      And in particular

      What is the £2,500 maximum grant based on?
      5. As the £2,500 limit to the monthly grant appears to cover all employment costs, it is unclear how benefits in kind, and in particular those being payrolled, will be reflected in the calculation.

      6. For full-time and part-time employees, the base for the 80% calculation is the employee's actual salary as of 28 February 2020.

      For employees whose pay varies, HMRC guidance advises the following:

      "If the employee has been employed (or engaged by an employment business) for a full twelve months prior to the claim, you can claim for the higher of either:

      the same month’s earnings from the previous year; or
      average monthly earnings for the year.
      "If the employee has been employed for less than a year, claim for an average of their monthly earnings since they started work.

      "If the employee only started in February 2020, use a pro-rata for their earnings so far to claim.

      "Once you’ve worked out how much of an employee’s salary you can claim for, you must then work out the amount of Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions you are entitled to claim."
      Looking at the last paragraph the accountants are going to be very busy.....
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Directors of defunct companies furloughing themselves?

        Hey, haven't paid myself last year as got a day job, still kept the payroll open just in case, if I start paying myself now can I still claim the govt grant? Asking for a friend

        Comment


          #5
          Originally posted by AlexKol View Post
          Hey, haven't paid myself last year as got a day job, still kept the payroll open just in case, if I start paying myself now can I still claim the govt grant? Asking for a friend
          No
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by AlexKol View Post
            Hey, haven't paid myself last year as got a day job, still kept the payroll open just in case, if I start paying myself now can I still claim the govt grant? Asking for a friend
            Depends what you mean by last year...

            The scheme covers 80% of whatever you paid yourself in 2019/2020...

            It’s still unclear exactly what will be seen as a valid or invalid claim. All we have at the moment is each employment stream is treated separately.

            Its obviously going to be questionable to claim if your ltd was practically mouth balled. But it’s really not clear yet despite some people’s forthright views.

            Comment


              #7
              Originally posted by AlexKol View Post
              Hey, haven't paid myself last year as got a day job, still kept the payroll open just in case, if I start paying myself now can I still claim the govt grant? Asking for a friend
              Tell your friend to stop trying to fiddle the system. If they have a day job, they are not (ethically or morally, at least) entitled to any grants from the scheme. Its for those that our losing out due to Covid-19, not those that have changed their working patterns because they chose to (or because of, eg, IR35).

              But, since they had no salary in the last year, they're eligible for 80% of their average salary of £0.
              Last edited by Paralytic; 6 April 2020, 09:48.

              Comment


                #8
                Originally posted by AlexKol View Post
                Hey, haven't paid myself last year as got a day job, still kept the payroll open just in case, if I start paying myself now can I still claim the govt grant? Asking for a friend
                So you knew last year that there was no work for your company and that was directly caused by the coronavirus and/or the lockdown? Wow. What's Tuesday's Euromillions numbers please?

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