Curiosity getting the better of me

Surely if furlough 80% is from gross, the government are funding tax & NI too?

Didn't find your answer?

From a gross of £1250 - the 80%  reclaimed is £1,000. Employee's net pay after tax and NI would be £1153 (keep pension out of this). It makes more sense to me that the 80% should be calculated from the net figure (£922.40 claimed). 

Oh please humour me and say you agree - it's been a lonely year just me and the payroll.

Thank you and hope you're all keeping safe

Veronica

 

Replies (4)

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By Paul Crowley
29th Nov 2020 18:30

They always have been.
If not then there would have been massive redundancies in April.
Job protection would have failed

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By paulhammett
29th Nov 2020 18:53

But the furlough claim is paid to the company, not the employee and whatever the employee is paid is taxable and Ni’able.

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JCACE
By jcace
29th Nov 2020 22:55

If fixed rate salary pre-furlough was £1,250 per month, furlough amount will be £1,000, which will be the gross salary, unless topped up. The £1,000 will be claimed, but (unless topped up) will be the amount on which tax, NI and pension are calculated.

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By SteveHa
30th Nov 2020 10:02

If you are picking this up from the published rules, employee tax/NI/pension are different than employer NI/pension. It is the employer's that is not funded.

Employee tax & NI goes straight back to the treasury.

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