Furlough pay

How is best to show this on the payslips based on the current government guidance?

Didn't find your answer?

I was just wondering if anyone may have yet processed payroll which include furloughed workers, and how the pay for them would be processed on the software.

From the guidance provided so far by the government, it seems that the 80% pay is based on February salary and this is capped at £2,500 gross. So, if the employer cannot top up to 100%, is it best to show this as a new pay element for the 80% pay?

EG an employee in February had £2,000 gross salary as normal, would it be best to show a new line for “furlough pay @ £1,600”? Or if an employee had £4,000 gross in February, show this as “furlough pay @ £2,500”?

But by doing this could there be any implication where HMRC then only pay 80% of the value already reduced to 80%?

Any thoughts on this appreciated, as at the minute I’m sure I’m overthinking things


Replies (12)

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By meadowsaw227
25th Mar 2020 08:55

Moneysoft have produced a set of details on how to show furloughed pay.

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By SolutionsTAS
25th Mar 2020 09:52

I have instructed our bureau staff to define a new pay description of 'furloughed pay', to account for the 80% recoverable, and to include any amount the employer pays above this level as 'normal pay'. This will allow us to draw off a summary from our software, which will be an aide memoire to process the furlough claims.
Rti submissions only include Gross pay, so the existing HMRC system will not be aware of what is furlough and what is 'other' paying expect the new 'furlough' system to be populated with the claimed amount only.

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25th Mar 2020 10:07

Comprehensive report on furlough workers below:


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Replying to FCCAATTTONY:
By Cheshire
25th Mar 2020 10:38

Comprehensive?!! I dont think so. It tells us nothing more than we have already had on here for DAYS, oh heck Im shouting now, I mean for days and days. Gawd is it only Wednesday?!

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By rockallj
25th Mar 2020 16:34

I'm going to show the 80% on all payslips as furloughed pay where applicable so that the RTI FPS ties in with the eventual upload to the HMRC portal when it goes live.

Any 20% shown separately.

Don't know if makes any difference to the FPS, but shows it clearly to employees at least. And as there is no clarity of how we treat directors of their own limited companies when they do not have employment contacts, I'm treating them the same on the £575.20 furloughed, made up to £719.00 pm. My concern is they are still working, but my argument is as an officer of the company rather than with their "employee" hat on. Fingers crossed.

All we can do it wait

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Replying to rockallj:
By SXGuy
25th Mar 2020 17:30

I'm with you on that. Directors have duties to perform that isn't classed as work. Therefore I believe you can be a director and a furloughed employee. Plenty will disagree tho

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By patrickcb
30th Mar 2020 18:26

As a practice we prepare payrolls, file accounts and RTI returns, etc. Are we not therefore carrying out the statutory duties of directors for them, enabling them to take furlough leave?

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By gavinbrown1984
30th Mar 2020 18:40

Just to clarify as I keep reading conflicting information/ views.


A) payroll processed at normal rate ie 100% with a view that the employer pays 80% to the employee with a view that this is reclaimed via hmrc.

Or b)

80% of wages are processed via rti, this is subsequently paid to employee and the full (80%) amount would then be reclaimable.

Thanks in advance

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Replying to gavinbrown1984:
By Matrix
30th Mar 2020 18:48

If the employer is only paying 80% then why would you process 100%?

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Replying to Matrix:
By gavinbrown1984
30th Mar 2020 19:07

Fair point,

So hmrc won’t be reimbursing 80% of RTI’d Income??

It will be on the claim employer makes?

Ie 1000 salary.

Employer to pay 80% = 800.

800 gross salary is processed rather £1000?

When making claim, employer claims for 800??

Again, reading conflicting information so just trying to find the correct info!

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Replying to gavinbrown1984:
By Matrix
30th Mar 2020 19:24

The employer can choose to pay 80%. If they put 100% on the payslip then they are committing to pay 100%. I have not seen anywhere that the repayment is linked to RTI, it is a separate system. Where have you seen this?

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By Rjb124
02nd Apr 2020 17:44

Is it clear anywhere whether furloughed pay is based on the February payslip or whether it is an average pay amount?

If it is the February pay slip, what is to stop all the directors of limited companies with the notional salary and dividend model posting adjustments to their PAYE for February and March to the 2500 maximum the government will pay and then claiming this?

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