Are they on the fiddle?

1234John

Hi all,

I am (really) asking for a friend regarding his fur-long payment...

My friend always thought he was PAYE (in his ignorance). When he was told to no longer come into work because of the lock-down I started to investigate what he may get paid (or not).

I discovered he was through Hudsons, which i assumed was an umbrella company. When I phoned Hudsons they said they were a PAYE company only and not an Umbrella... This didn't make sense to me>!>!

 My final thoughts at this point was my friend was self employed and would have to wait for Boris to support the self employed... Or of course my friend could sign on to job seekers at this stage to get some money immediately but he decided to wait!!

Some time later and much to our surprise Hudsons then released a statement saying he would be fur-longed!! This made no sense to me, but you can't look a gift horse in the mouth during these times. 

So now my friend has received a payment of approx 60% for 3 weeks, as of yesterday, with the below statement from Hudson's... 

My questions...

1. Are Hudson on the fiddle? They would normal charge a "processing fee" but I thought that was not aloud during the current climate. 

2. Are they just using the  statement below to try and confuse people?

3. Should they even be fur-lowing people?

4. Can anyone make sense of this?

Finally, my friend has taken approx 6 weeks off (plus bank holidays) in the last calendar year and he always has £50 a week removed from his wage as a "holiday" fund. He obviously works in the contribution industry.

As mentioned in his own mind he pays his taxes and thinks or thought he was PAYE for the END company he works for.

Thanks in advance

Hudson Blue: Coronavirus Job Retention Scheme (CJRS)

Your Furlough Payment

Dear Operative

After receiving the grant from HMRC earlier today, we have sent out a payment by fasterpay to you as a qualifying operative this afternoon.  

The payment is for the three week period from 6 April to 26 April. With the client’s agreement, if you continue to be furloughed from 27 April you will be eligible for our next payment run which will be at the end of May. As with this time, to comply with the rules of CJRS, we will need a confirmation email from the client and yourself, so that we have evidence that you have not worked for the client or Hudson during the furlough period – we will be in touch regarding this nearer the time.

When it comes to calculating the value of the grants available under CJRS we have followed the calculation method dictated by HMRC.  This may mean you could receive less than you are expecting.  The calculation requires us to divide your total gross pay from Hudson by the number of calendar days between your first payment in the 2019 tax year and 5 April 2020.  We then pay 80% of this figure multiplied by the number of calendar days in the furlough period, for this first payment that is 21 days.

If you have had a sporadic attendance with lots of non-working days, please be aware that the amount you receive will not be 80% of your normal day rate, it will be an average payment over the year including all non-working days as per the calculation as set out above.  Or if you have large gaps between payments, then your grant will be reduced due to the amount of non-working days.  

Unfortunately, if you are one of those with a low average, there is nothing we can do, HMRC have dictated the rules.

Hopefully you will be back at work soon.

Ian Anfield MICE

Managing Director

sharpe106

Yes they can furlough people. Without knowing the figures nobody can know if there calculations are right or not. There is no mention of a processing fee so without knowing the figures we can’t if one has been charged, but as you said they are not allowed to.  

1234John

Thanks Sharpe, is the calculation they state correct (or more involved)? If I was to run the numbers?

calcotti

1234John said:

Thanks Sharpe, is the calculation they state correct (or more involved)? If I was to run the numbers?

sharpe106 said:

Yes they can furlough people. Without knowing the figures nobody can know if there calculations are right or not. There is no mention of a processing fee so without knowing the figures we can’t if one has been charged, but as you said they are not allowed to.  

Has already been stated that we cannot answer question about whether the calculation is correct. The methodology appears correct.

1234John

Calcotti, received and understood!! Thank-you and sorry for winding you up it was not intended!!

calcotti

1234John said:

Calcotti, received and understood!! Thank-you and sorry for winding you up it was not intended!!

No winding up took place - just didn't want you hanging on for an answer we cannot give.