Furlough timeline: the dates you need to know

  • Business Advice
Peninsula Logo

Peninsula Group, HR and Health & Safety Experts

(Last updated )

Major changes to the Coronavirus Job Retention Scheme will land over the next few months. And they could cause a big hike in your staff costs.

Here are the updates that you need to know about, plus advice on how to keep your overheads under control as the furlough scheme winds down.

10th of June: Your last chance to furlough staff

The furlough scheme will run until October 2020, but close to new entrants after the 30th of June 2020.

However, the last date you can put someone on furlough is much earlier—Wednesday the 10th of June 2020

That’s because your employee needs to have been on furlough for at least three weeks before you can claim funding for wages.

So, if you want to furlough new employees and benefit from government support until October, you need to act fast.

30th of June: Furlough scheme closes to new entrants

Remember, while this is the official closing date, you must have put someone on furlough on or before the 10th of June to claim your grants.

1st of July: Launch of ‘part-time furlough’

From this date, you can make use of ‘flexible furlough’.

This allows you to bring employees back part-time and still claim grants to cover part of their wages.

For example, you can choose to bring an employee who works five days a week back for two days a week. You’ll pay for these two days as normal and the scheme will continue to cover some of their wages for the other three working days.

It’s important to record your employees’ hours carefully when they’re on part time furlough, as you’ll need to report this accurately.

You’ll also need to keep this data secure for at least five years to meet government guidance. HMRC has the right to retrospectively audit your business and will expect to see this info. 

1st of August: Employer contributions hit

From August, you need to pay National Insurance (NI) contributions and employer’s pension contributions on furloughed employee’s wages.

The government will still cover 80% of furloughed employees’ wage costs (minus your contributions), to a maximum of £2,500 per employee per month. You don’t have to top this up to 100% unless you want to. 

1st of September: Contributions rise to 10%

From the start of September, you must contribute 10% towards the 80% of a furloughed employee’s wages (up to £2,500 per month), plus NI and pension contributions. The government will fund 70% of their wages up to £2,190 per month.

1st of October: Contributions rise to 20%

From the start of October, you need to contribute 20% towards the 80% of a furloughed employee’s wages (up to £2,500 per month), plus NI and pension contributions. The government will fund 60% of their wages up to £1,875 per month.

31st of October: Furlough scheme ends

Assuming no further extensions are announced, the Coronavirus Job Retention Scheme closes. Employers get no further funding for staff after this date.

Act now to keep staff costs under control

If you want to benefit from government support until October, then you must furlough staff by the 10th of June.

Remember, you can only furlough employees that:

  • Are on PAYE.
  • Were on your payroll on or before the 19th of March 2020.
  • Had been notified to HMRC via an RTI submission on or before the 19th of March 2020.

You’ll need to collect the relevant info on the employee you want to furlough and submit this, along with their earnings, to the HMRC through an online portal.

It’s important to get your furlough process correct to unlock your funding. So, for fast advice on how to furlough staff quickly before the deadline, contact Peninsula.

We can also help you plan to keep staff costs under control as your business comes out of lockdown. That includes helping you amend staff contracts, change working hours or, in the worst case, reduce the size of your workforce. Click here to claim your advice today

 

FAQs

Got a question? Check whether we’ve already answered it for you…

Related articles

  • polling station

    Blog

    What could a general election mean for employment law?

    Here's what the big three have each vowed to do should they come away with an election win.

    Peninsula TeamPeninsula Team
    • Employment Law
  • NIC

    Blog

    Conservatives plan NICs abolition for self employed

    After a difficult week, PM Rishi Sunak has set out a raft of tax measures at the Conservative manifesto launch with plans to abolish main NICs rate for four million self employed workers

    Peninsula TeamPeninsula Team
    • Employment Law
  • Global survey results

    Blog

    UK Lagging in Mental Health Conversations: A Wake-Up Call for Employers

    The UK is diverging from this global trend, with a 4% decrease in employees speaking out about mental health issues.

    Peninsula Team Peninsula Team
    • Business Advice
Back to resource hub

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and Health & Safety questions

Sign up to our newsletter

Get the latest news & tips that matter most to your business in our monthly newsletter.