Share this content
3

Furlough claim - variable pay

Switching between the two methods

Didn't find your answer?

Hi all,

Couldn't find this discussed elsewhere. Where employees are paid hourly you can select to calculate on the basis of same period last year or average earnings. Are you able to switch between the two bases for claiming? If not, it makes it difficult to assess which approach is more beneficial as we obviously don't know how long this scheme is going to last, but being able to switch would allow you to effectively claim more than the employee has been paid overall (even at 80% potentially). 

Thoughts? Can't find any explicit guidance. 

Replies (3)

Please login or register to join the discussion.

avatar
By Knight Rider
23rd Apr 2020 08:52

You cannot claim more than you pay the employee. Are your employees contracted for a fixed number of hours? What is the pay frequency?

Thanks (0)
avatar
By ry4n
23rd Apr 2020 08:57

"If the employee has been employed continuously from the start of the 2019 to 2020 tax year, you can claim the highest of either:

80% of the same month’s wages from the previous year (up to a maximum of £2,500 a month)

80% of the average monthly wages for the 2019 to 2020 tax year (up to a maximum of £2,500 a month)"

https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim...

My understanding is that you pick the highest one in each period

Thanks (0)
Replying to ry4n:
avatar
By BANDMANADA
23rd Apr 2020 09:21

That’s exactly what I’ve done

Thanks (0)
Share this content

Related posts