What amount do you claim under the Flexible Furlough Scheme?
You will claim a pro rata’d amount of 80% of salary, based on the proportion of hours not worked out of the employee’s normal working hours (their “usual” hours).
There are 2 ways to calculate an employee’s usual hours, depending on whether they have fixed or variable hours/pay:
- For those with fixed hours/pay, you take the number of hours worked in the pay period before 19 March 2020.
- For those with variable hours/pay, you take the higher of:
- the average number of hours worked in the tax year 2019 to 2020 or
- the corresponding calendar period in the tax year 2019 to 2020.
If employees are paid per task or piece of work done, you should work out the usual hours for these employees in the same way as for other employees who work variable hours, if possible.
When you calculate the usual hours, you should include any hours of leave for which they were paid their full contracted rate (such as annual leave) and any hours worked as overtime (but only if the pay for those hours was not discretionary).
Related FAQs
All three of the PPNs are effective immediately and apply to the following Contracting Authorities:
- Central Government Departments
- Executive agencies
- Non-departmental public bodies
- Local authorities
- NHS bodies
- The wider public sector
In regards to PPN03/20, those in scope organisations that do not currently use procurement cards are advised to immediately put in place arrangements using the relevant Crown Commercial Service Agreement (Lot 2 of RM3828 Payment Solutions).
- Audit
- Identify your off-payroll contractors
- Determine the status of off-payroll contractors
- CEST – HMRC employment status checker for tax purposes
- Communication – liaise with affected workforce
- Contracts – get them compliant
- Consider the Ward Hadaway toolkit
According to the guidelines laid down by the Treasury, many Start-up businesses will not be considered “viable” as they are at an early stage in the investment cycle (i.e. delivering negative returns but with strong growth prospects). This means they are unlikely to qualify for CBILS although for primarily UK based Start-ups it is still worth making enquiries as policies are rapidly evolving.
For early-stage businesses in their first two years of trading, the British Business Bank’s Start-Up Loans programme (loans £500 to £25,000 at 6% p.a. interest) may be more suitable. Visit www.startuploans.co.uk for more information.
For start-up businesses that are unable to access CBILS, the Government launched The Future Fund in May 2020 via the British Business Bank, which provides convertible loans to UK-based innovative companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors. This scheme is available until 30 September 2020 initially.
Your business is eligible if:
- it is UK-incorporated – if your business is part of a corporate group, only the parent company is eligible
- it has raised at least £250,000 in equity investment from third-party investors in the last five years
- none of its shares are traded on a regulated market, multilateral trading facility or other listing venue
- it was incorporated on or before 31 December 2019, and
- at least one of the following is true: (i) half or more employees are UK-based; and/or (ii) half or more revenues are from UK sales.
Further information is available on the Government website, www.gov.uk/guidance/future-fund
The Government is also offering additional support for small and medium size firms that are primarily focused on research and development. This targeted support is available through a continuity grant and loan scheme. The grant scheme is only available until 29 May 2020 while the loan scheme is open for applications until all the money is allocated or 31 December 2020 (whichever is earlier). This scheme is administered by Innovate UK, the national innovation agency, and this support will mostly only be available to existing Innovate UK customers.
Further information is available on the on the Government website, www.gov.uk/government/publications/access-coronovirus-business-innovation-support-package
Yes: The Cabinet Office has published a number of Procurement Policy Notes to provide instructions to Public Bodies to enable payments to continue to be made to at risk suppliers (and their supply chains) who have been affected by Covid-19. Copies of this guidance can be obtained from the Government website at: https://www.gov.uk/government/publications/procurement-policy-note-0220-supplier-relief-due-to-covid-19
On 18 March 2020, the Government announced that it would pass emergency legislation which would prevent landlords, both social and private, from bringing possession proceedings against tenants who are unable to pay their rent. The Housing Secretary, Robert Jenrick, stated that “no renter who has lost income due to coronavirus will be forced out of their home, nor will any landlord face unmanageable debts.”
The announcement came after several organisations, including housing charity Shelter, expressed concerns that more than 50,000 households could face possession proceedings due to the economic uncertainty following the Covid-19 outbreak.