Putting staff on furlough

DanBlack18

Hi, Me and Dad run a small family business and we want to put our employees (5) on 80% wage through the new scheme. What is the process you do it? Is there a step by step? And do we still pay the tax and NI? If so is that taken off the 80% wage?

RobRiding

I believe the system isn't quite up and running yet, my accountant informed me yesterday that they believe they will pay you 80%of gross pay, and you then pay staff as normal, but not 100% sure yet when its up and running

calcotti

Details of how the scheme will operate have not yet been announced - I think they are still working it out.

All payments you make to staff will still be earnings subject to Tax, NI and any other applicable deductions in the normal way. I assume that the employer will still be paying employers NI but i don't know whether the 80% figure will include this or just he employee pay. The announcement refers to reimbursing employers which implies you will have to pay the money out first and then claim it back.

However nothing is definite yet. See https://forums.moneysavingexpert.com/discussion/6119611/furloughed-workers-please-read#latest

selina2000

DanBlack18 said:

Hi, Me and Dad run a small family business and we want to put our employees (5) on 80% wage through the new scheme. What is the process you do it? Is there a step by step? And do we still pay the tax and NI? If so is that taken off the 80% wage?

You send your empoloyees home so that they do no work for you.
You are still bound by the terms of employment you have provided your employees and that means paying them what is owed. (unless you mutually agree otherwise)
You make an application under the Coronavirus Job Retention Scheme - how to do that is work in progress, but will be available by end of April. Applicatiions will be able to be backdated to the beginning of March.
Tax & NI is still to be paid, but (a) it is expected that will be included in the scheme and (b) you may be able to delay to making this payment to HMRC.