The furlough scheme needs no introduction. Here are some important points to consider when claiming furlough for employees
Tip 1 – Keep Good Records
The Coronavirus Job Retention Scheme is a pay now and check later scheme. This means HMRC are dishing cash out now and will retrospectively perform the necessary checks to make sure everything is above board, including the amount people have claimed is correct and staff were indeed furloughed and didn’t work at all.
Tip 2 – Don’t Over Claim Employer’s National Insurance
If you claim the Employment Allowance of £4,000 relief against Employer’s National insurance, make sure you’re not claiming National Insurance, that you wouldn’t pay anyway, through the Coronavirus Job Retention Scheme – HMRC will claw back over payments later on.
Tip 3 – Documentation
Documentation should be completed when moving employees to furlough. The employer must confirm to the employee in writing that they have been furloughed, and a record of this documentation and communication must be kept for a minimum of 5 years.
Tip 4 – Think Strategically
Think strategically when deciding which employees should be furloughed, when they should be furloughed and when they should return to work. Have a plan in place, which covers more than one scenario and the impact to the business of the current economic situation, changes to the situation and the workload the business is dealing with.
Tip 5 – Training
Furloughed employees can undergo training while they’re furloughed, so if you have training staff need to complete, or have been waiting for sufficient time to up skill members of your team, now might be a good time for this.