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Furlough salary - scratch everything I did

So, we sent letters out, and now we have guidance

Didn't find your answer?

Some of my soon to be furloughed staff will be relieved when I tell them that their 'salary' under furlough will not be as low as we feared.

The guidance now states that the amount will be £2500 + associated ERS NI and ERS pension,

Replies (10)

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RLI
By lionofludesch
27th Mar 2020 09:23

Every day, something changed.

I've already told my clients that the advice I give now won't necessarily be the advice I give next week.

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Replying to lionofludesch:
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By kathyray
27th Mar 2020 10:32

Or even later today!

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By insolventnl
27th Mar 2020 10:55

Just to confirm I am reading this correctly

So is it
1) £2.5k net to the employee (if this is what they can get)

2) £2.5k gross to employee from which E'es NI and PAYE is deducted

3) £2.5k net to the employee (if this is what they can get) -
Employer has to pay E'rs NI

4) £2.5k net to the employee (if this is what they can get) -
Employer also gets a grant for E'r NI

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Replying to insolventnl:
RLI
By lionofludesch
27th Mar 2020 10:59

insolventnl wrote:

Just to confirm I am reading this correctly

So is it
1) £2.5k net to the employee (if this is what they can get)

2) £2.5k gross to employee from which E'es NI and PAYE is deducted

3) £2.5k net to the employee (if this is what they can get) -
Employer has to pay E'rs NI

4) £2.5k net to the employee (if this is what they can get) -
Employer also gets a grant for E'r NI

I vote 2. I think.

£2500 gross pay.

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Replying to lionofludesch:
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By more rain
27th Mar 2020 11:13

lionofludesch wrote:

insolventnl wrote:

Just to confirm I am reading this correctly

So is it
1) £2.5k net to the employee (if this is what they can get)

2) £2.5k gross to employee from which E'es NI and PAYE is deducted

3) £2.5k net to the employee (if this is what they can get) -
Employer has to pay E'rs NI

4) £2.5k net to the employee (if this is what they can get) -
Employer also gets a grant for E'r NI

I vote 2. I think.

£2500 gross pay.

I agree

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Giraffe
By Luke
27th Mar 2020 11:15

I also agree

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By Mrs Incredible
27th Mar 2020 14:47

That's also my understanding

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By fawltybasil2575
29th Mar 2020 13:35

The £2,500 is of course the MAXIMUM monthly amount which HMRC will reimburse, such being the reimbursement where the “regular wage” (as defined) is £3,125 or more.

The "80% of regular wage" rule still applies (the regular wage being defined in the NEW guidance for Employers, here):-

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

Basil.
EDIT. I have amended this post upon realising that the original wording was incorrect (apologies).

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By John Wheeley
29th Mar 2020 12:20

I'm not sure about this, there seems to be ambiguity in the wording

'You will receive a grant from HMRC to cover the lower of 80% of an employee’s regular wage or £2,500 per month'

Why not use a wage of £3,125 ? (then £3,125 x 80%=£2,500)

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Replying to John Wheeley:
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By fawltybasil2575
29th Mar 2020 13:41

@ John Wheeley.

As I’ve indicated in the “EDIT” to my last post, I have amended the wording, as the original wording did not say what I had intended it to say (apologies again). I hope my amended wording is clear but, if not, please post again.

Basil.

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