Furlough facts Time for companies to contribute

Q When do businesses need to start contributing to the furlough scheme?

A The scheme will work as normal – with the Government paying 80 per cent of an employees’ salary up to a maximum of £2,500 per month – until August 1. At that point companies will be required to start paying National Insurance contributions and contributions. pension auto enrollment

Q How does the taper system work?

A From September, employers will continue to pay the above contributions and will also be required to pay 10 per cent of salaries, with the Government contributing 70 per cent of wages up to a cap of £2,190. In October, companies will be required to pay 20 per cent, with the Government paying 60 per cent of wages up to a cap of £1,875.

Q How does the new part-time provision work?

A Employers and employees will come to an arrangement on how many days per week the furloughed member of staff will return to work. They will be paid 100 per cent of their salary for the days they work by the company, with the Government topping up their pay for the days they are furloughed to the standard 80 per cent rate.

Q How does the furlough taper work alongside the part-time provision?

A Take the example of a worker who goes back to work for two days and is furloughed for three. The employer pays 100 per cent of their salary for their two days at work, while the Government will pay 80 per cent of their wages for the three days furloughed in July and August.

From September, the Government will pay 70 per cent of wages for furloughed days, with the employer paying 10 per cent. In October, the Government would pay 60 per cent of per employer wages cent. for topping furloughed up the days, remaining with the 20

Q When will the part-time provision be brought in, and how long will it last?

A Originally it was set to start in August but it will now begin on July 1, after businesses lobbied the Treasury for more flexibility in the furlough system. It will last until the end of October alongside the regular furlough system.

Q Can anyone apply for the part-time furlough scheme?

A No. Only those already using the furlough scheme will be able to apply for the part-time provision when it begins on July 1. This is because it is designed to bring back those already furloughed into part-time work.

Q What about the new selfemployed grant?

A From August 1 freelancers will be able to apply for a final selfemployed grant, again calculated on the basis of three months’ income. The Government contribution will fall to 70 per cent of the applicants’ monthly salary, capped at £6,570.