Updated furlough agreement template

legal_updates

The requirement is that the employer should have PAYE payroll scheme in place on or before 2 March 2021 to be able to claim from May 2021 onwards.

Author: Kiril Moskovchuk
Published:
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This article is 1 month old.

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We wrote recently about changes to the furlough scheme.

Reflecting the recent changes, here is the updated version of the furlough agreement template:

For the period starting May 2021 and to the end of the scheme on 30 September 2021, as currently envisaged, furlough claims can be made even if the scheme has not been used before by the employer or the employee claimed for has not been on furlough previously.

The requirement is that the employer should have PAYE payroll scheme in place on or before 2 March 2021 to be able to claim from May 2021 onwards.

Qualifying employees for claims starting from May 2021 should be employed on 2 March 2021 and a PAYE RTI payment notification should be made to HMRC in their respect between 20 March 2020 and 2 March 2021.

With the gradual return to normality, it is important to stress that the purpose of the furlough scheme is to support employers “whose employment activities have been adversely affected by the coronavirus and coronavirus disease or the measures taken to prevent or limit its further transmission” as the 7th Treasury Direction states. Businesses should be prepared to demonstrate the impact of Covid-19 if their furlough is queried by HMRC.

Kiril Moskovchuk

Legal Advisor

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