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Furlough if no PAYE Scheme

I have a couple of clients who only pay wages below the LEL. Excluded?

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I have a couple of clients who only pay wages below the LEL to their employees. They therefore do not have a PAYE Scheme. As the guidance states that the Job Retention Scheme applies to "all UK employers with a PAYE scheme", they do not appear to qualify. Do others agree?

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By SXGuy
26th Mar 2020 14:21

Possibly. Devil will be in the detail. They maybe be able to claim £94 a week universal credit though.

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By Duggimon
26th Mar 2020 16:11

Lower earnings limit of £6,136, 80% of which is £4908.80, or £94.40 a week.

Which is, possibly not coincidentally, almost identical to what they can get via Universal Credit.

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By John R
26th Mar 2020 17:49

Some of the employees have been with the clients for years so if not furloughed they would be redundant and notice pay would arise as well as redundancy pay so furloughing may be better even if there is no eligibility for reimbursement (depending, of course, on how long this continues).

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Replying to Duggimon:
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By John R
26th Mar 2020 17:54

Some of the employees have been with the clients for years so if not furloughed they would be redundant and notice pay would arise as well as redundancy pay so furloughing may be better even if there is no eligibility for reimbursement (depending, of course, on how long this continues).

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By paul.benny
27th Mar 2020 08:25

The more detailed guidance is clear that there must have been a PAYE scheme at 28 Feburary, so yes, you're right.

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus...

The question of furlough vs redundancy is probably one for negotiation between employer and employees. What can employer afford? Would s/he want the workers to return once things are 'back to normal'?

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