On 30 June, the Job Retention Scheme (JRS) ceased and became the Flexible Furlough Scheme (FFS). The scheme is aimed at helping employers retain their workforce as businesses get back up and running, but with the ability to support flexible working of furloughed staff, as business demands build up.
The new rules for claiming any furlough grants back from HMRC from 1 July will be even more complex than under the previous JRS. Whilst the claim process itself is a completely separate function to the payroll process, some employers may be choosing to only pay staff what they are able to claim back from HMRC, although they will also need to contribute towards their employees’ furloughed pay from 1 September, and so naturally some aspects of the claim work may be needed first, to inform employers what is to be processed through your payroll.
Therefore, if you are using the Government’s furlough scheme, whether this was the JRS or the new FFS, and you need our help in calculating any part of the information needed to be fed into and process as part of the payroll calculations, please do let us know.
The new scheme involves a calculation for ‘usual hours’, to enable you to work out what the furloughed hours are by deducting actual hours worked from the usual hours to be worked, and guidance from HMRC can be found here. The calculations are complex but our AG Usual Hour Calculator may be used to help you calculate your employees’ usual hours, as HMRC’s own calculator will not perform this work for you.
If you would like an overview of the JRS or the FFS before making use of our AG usual hours calculator, please do let us know. Our website contains a detailed guide to the Job Retention Scheme and the Flexible Furlough Scheme and we have run several webinars on the topic which can be viewed here.