Flexible Furlough Scheme

Source - Charles Waterlow - HR Consultant for CFA Members

On Friday, HMRC released details of the flexible furlough scheme, which starts on 1 July 2020.  Under the flexible furlough scheme, employees no longer need to avoid doing any work for the employer, but can work for some of the week and be furloughed for the rest, in proportions decided between employee and employer.

The most significant change is that the minimum three week period for furlough has been removed (as of 1 July 2020).  There is no minimum period, although any claim through the CJRS portal must be in respect of a minimum one week period (ie employers can only put in four claims a month, not 31).

Broadly, from 1 July, employers will claim a pro rata'd amount of 80% of salary, based on the proportion of hours not worked out of normal working hours.  To calculate the normal working hours for those with fixed hours/pay, you simply take the number of hours worked in the pay period before 19 March 2020.  To calculate the normal working hours for those with variable pay, you take the higher of (a) the average number of hours worked in the tax year 2019 to 2020 or (b) the corresponding calendar period in the tax year 2019 to 2020.