Closing date for furlough applications

leitmotif

What's the closing date for furlough applications? Must they be submitted asap, or can one wait until May or June?

Illusionary

Presumably you're referring to claims for grants under the Job Retention Scheme. I haven't seen any specific deadline publicised just yet; given that the scheme is ongoing at least throughout June, I'd say that it's a safe assumption that applications will be accepted at least into July - but of course, earlier applications will mean earlier receipt of payments, which for most businesses that are significantly impact by the situation, is likely to be a significant factor.

unholyangel

You can wait and backdate (as long as you submit before whatever closing date they decide). You can only make a claim in advance of 14 days of you making the payment to the employee though

leitmotif

So if I'm a director of a one-man limited company and don't know whether any customer orders will be coming in over the next couple of months, but can't be sure and don't want to furlough myself now and then have to turn down any orders that do come in, I can simply postpone the decision until the end of the scheme (or until any closing date announced in due course) and see at that point whether I've had any orders. Obviously if I have had orders, I can accept them and forget about furloughing myself. Cash flow won't be an issue.

Illusionary

leitmotif said:

So if I'm a director of a one-man limited company and don't know whether any customer orders will be coming in over the next couple of months, but can't be sure and don't want to furlough myself now and then have to turn down any orders that do come in, I can simply postpone the decision until the end of the scheme (or until any closing date announced in due course) and see at that point whether I've had any orders. Obviously if I have had orders, I can accept them and forget about furloughing myself. Cash flow won't be an issue.

I'm not convinced that this will work as you hope, particularly in view of the need to have written agreement of the furloughed status.

leitmotif

Unless I'm missing something, that's the easiest bit. Just draw up a letter. Stick a date on it.

Illusionary

I'm not going to try to offer advice on the legalities around backdating. I'm not sure, though, why you feel that you need to delay the decision to furlough in the first place - if you need to return to work before the three week minimum period has elapsed, you can do so, the business just forfeits the ability to claim from the Government scheme for that period.

leitmotif

Illusionary said:

I'm not sure, though, why you feel that you need to delay the decision to furlough in the first place - if you need to return to work before the three week minimum period has elapsed, you can do so, the business just forfeits the ability to claim from the Government scheme for that period.

For the whole of that three-week period, even those prior days on which work wasn't coming in? In which case, the answer is clear: wait for work to come in, then retrospectively apply for furlough up to the day before the work came in. If returning to work before the minimum of three weeks will not entail forfeiting the ability to claim for those prior days, then it doesn't make any difference either way, though that would call into question the use of the word 'minimum', if you can simply cancel it at any time without affecting your claim for previous days.

LilElvis

Each period of furlough needs to be for a minimum of three weeks and if the employee returns to work within the three weeks then the employer won't be able to claim from HMRC for the whole period. So you can furlough for three weeks, work for a week and then refurlough for a further three weeks and be able to claim for the furlough periods. Furlough for two weeks, work for a week and then repeat and you can claim nothing. Quite clear. The premise is to retain jobs, not supplement wages otherwise employers would doubtlessly do something like furlough Monday to Wednesday and have employees working Thursday and Friday.

leitmotif

LilElvis said:

Each period of furlough needs to be for a minimum of three weeks and if the employee returns to work within the three weeks then the employer won't be able to claim from HMRC for the whole period. So you can furlough for three weeks, work for a week and then refurlough for a further three weeks and be able to claim for the furlough periods. Furlough for two weeks, work for a week and then repeat and you can claim nothing. Quite clear. The premise is to retain jobs, not supplement wages otherwise employers would doubtlessly do something like furlough Monday to Wednesday and have employees working Thursday and Friday.

OK, that's clear. Then the best option is to hold up and apply only once an order comes in, with the furlough period extending up until the day before the order.

unholyangel

You are only considered furloughed for the purposes of CJRS starting on the day you & your employer agree to the furlough in writing. 

6.7 An employee has been instructed by the employer to cease all work in relation to their employment only if the employer and employee have agreed in writing (which may be in an electronic form such as an email) that the employee will cease all work in relation to their employment.

You cannot retrospectively furlough yourself. You are either not required to be available for work or you are required to be available for work (even if no work comes in).