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How Furlough pay would work in this instance?

Purchase of a business and furloughed staff

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A client of mine has purchased a business, and one of the staff members is on furlough. I wanted to ask, if I need to make a new application (register to obtain furlough pay for this individual from HMRC), or whether the employee comes across as furloughed and I continue using the old claim details made by the previous business owner?

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By paul.benny
28th May 2020 14:51

If it's trade-and-assets acquisition, the employees will transfer to the new owner under TUPE and it's a simple matter of claiming the JRS subsidy. If the transfer date does not coincide with the end of a claim period, you'll have to ensure that there is no gap or overlap.

The sale and purchase agreement should have covered prepayments and accruals, including payroll generally.

If the acquisition is of a company, nothing changes unless the new owner chooses to make changes - such as consolidating employees under one payroll and one PAYE scheme.

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