As you are aware, the Government has announced that it will meet 80% (up to £2500) of WAGE COSTS for employees on Furlough Leave but as yet has not published detailed guidance.
We thought we would alert you to the POSSIBILITY that it will only meet 80% of whatever your Furlough Leave costs are, not 100% of the 80% (if you’ve reduced pay to 80% or 100% if you’ve kept employees on full pay during Furlough Leave) – although this action will have reduced your cost to 20%.
As we said, at this stage, we truly don’t know anything more than we have published but thought we’d give you a heads up.
The Institute of Chartered Accountants has set up an advice page which you can access there. As with everything at the moment it is being constantly updated but worth keeping an eye on, there is a very useful illustration relating the wage costs at point 9 so please do have a look.
https://www.icaew.com/insights/viewpoints-on-the-news/2020/mar-2020/coronavirus-job-retention-scheme-furlough-guidance?utm_campaign=Members%20-%20ICAEW&utm_medium=email&utm_source=1355421_ICAEWDaily_News_25Mar2020&utm_content=furlough&dm_i=47WY,T1UL,JVZ82,3HZIX,1
