# Revised furlough scheme from 1 July: What you need to know

**HMRC amended its guidance regarding the coronavirus job retention scheme (CJRS) on 12 June and revised it further on 1 July. Kate Upcraft looks at what this means for employers who wish to flexi-furlough employees from 1 July.**

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I can just imagine employers trying to make sense of this:-) It's even going to take me a while.

"Only one claim per PAYE scheme is permitted, which must include all pay frequencies."

So where multiple employees each work different hours over different weeks, will the new system allow 4 different weekly claims within the same calendar month for the same PAYE scheme?

My understanding is that the furloughed hours will still be paid/claimed on the old 19/20 pay rates and the worked hours are obviously on the 20/21 rate. What shall we do about holiday pay which is accumulated under furloughed hours? Rightly or wrongly I have actually paid holiday hours claimed at the rate based on the month they are claimed in.

I am so glad most of my payrolls are pretty small!!

I would take the view that although Furloughed pay is based upon the appropriate hourly rate at the time the employee was first furloughed; whereas holiday pay (at of course 100% ) would be paid at whatever is the contractual rate applicable when the holiday is taken i.e. in accordance with the contractual rate in 2019/20 as upgraded by 2020/21 MWR .

Hi Kate

Thanks for this, another very useful article. 'See' you on Weds technology permitting :-)

Does anyone know if you have to re-furlough an employee for less than 21 days. If the employee has been furloughed from the beginning but has come back to work for 7 days and then needs to be re-furloughed to the end of June?

(1) "Does anyone know if you have to re-furlough an employee for less than 21 days."

Taking your question at face value, albeit it seems (with full respect, of course) a little strange, the answer is "No: as one does not ""have to" re-furlough an employee for less than 21 days.

(2) "If the employee has been furloughed from the beginning but has come back to work for 7 days and then needs to be re-furloughed to the end of June?"

If you could state the DATE from which the employee will be/has been re-furloughed, this would help in my answering the implied question.

Basil.

the operative was un-furloughed last week and is due to be re furloughed tomorrow.

He may be needed again in the first week in July. Is this possible or does he have to complete another 3 weeks? Thanks for your help

@ michdellelondon.

Since we are still in the "SEISS1"period, then the important point in your case is that, to enable a valid furlough claim to be made, the "minimum three weeks" rule must be complied with. Hence, as the "new furlough period" will start tomorrow (16 June 2020), the employee must continue "in furlough" up to and including 6 July 2020.

So if he returns to work on or before 6 July 2020, NOTHING can be claimed from HMRC for the new furlough period. Noting your indicating that the intention is for him to return to work "in the first week in July", then (unless there are some extenuating circumstances which necessitate his working again on or before 6 July 2020) the obvious commercial decision will be to delay his return to work to 7 July 2020.

It was very recently clarified that (as long as there has been a previous furlough period- which fortunately you state there was in your case) then a valid furlough period can "span" SEISS 1 and SEISS 2, ie that it can start on or before 30 June 2020 and finish on or after 1 July 2020.

The SEISS 1 rules must however be fully observed for the period 1 July 2020 up to the end of the first 21 days of the new furlough period; and hence the employee must continue to be "fully furloughed" up to the end of the 21 days, ie one cannot apply the "flexible furlough" rules to the period 1 July 2020 to the end of the 21 days.

Basil.

Are you absolutely sure this is correct? The guidance says:

'Separate claims will need to be submitted to cover the days in June and the days in July that you want to claim for, even if employees are furloughed continuously. This may mean that your claim periods will differ from the pay periods you use.

This is from 'Decide the length of your claim period' here https://www.gov.uk/guidance/steps-to-take-before-calculating-your-claim-...

Doesn't the three week requirement finishes at 30th June?'

@ newmoon.

Forgive me but I am not entirely sure why this aspect has confused you.

By way of background, I was initially under the impression that one could not have a 21-day furlough period starting on or before 30 June 2020 but finishing on or after 1 July 2020, since such period would be partly in SEISS 1 and partly in SEISS 2; but I awaited the further formal guidance which HMRC promised. When that further guidance was published, it (I was pleased to note) clarified that one can indeed have a qualifying 21-day period which "spans" SEISS 1 and SEISS 2.

Your quote from the guidance refers to claim periods which "cover the days in June and the days in July that you want to claim for": this is precisely the point at issue, ie periods (impliedly valid furlough periods) which consist of "days in June" and "days in July".

Elsewhere, guidance states that, from 1 July 2020 onwards, claim periods must be either whole calendar months or parts of calendar months, hence for example one cannot have a claim period which starts in June and ends in July.

Consequently, for a 21-day valid furlough period starting in June and finishing in July, and since that whole claim does not fall into one calendar month, it has to be split between (if say we take as an example a furlough period of 19 June 2020 to 9 July 2020) (i) 19 June 2o20 to 30 June 2020 and (ii) 1 July 2020 to 9 July 2020: hence the furlough pay for period (i) must be included in a claim period ending on 30 June 2020 and the furlough pay for period (ii) must be included in a claim period starting 1 July 2020 (in fact, the 1 July 2020 to 9 July 2020 pay can be included in two July claims, eg 1 July to 7 July 2020 and 8 July 2020 to 14 July 2020).

Basil.

Basil

Thanks very much for the detailed response, though I'm still unclear about one particular aspect.

Prior to 1st july an employee had to be furloughed for a minumum of three weeks and if they were furloughed multiple times between 1st March and 30th June each furlough period has to be for at least three weeks.

I think what you are saying is that if, for example, someone was furloughed throughout April, unfurloughed in May and the first half of June and then furloughed again on 22nd June, they can meet the three week requirement for CJRS 1 by remaining furloughed through to 12th July. I agree this is the case.

What I am trying to clarify is that, provided an employee has been furloughed for three consecutive weeks between 1st March and 30th June, there isn't a minimum furlough period that they have to be furloughed for from 1st July. For example an employee could be furloughed for the week beginning 13th July only and a claim could be made for that one week, it does not need to be for three consecutive weeks from 1st July onwards.

Is that your understanding too please?

Likewise under Flexible Furloughing in theory an employee could be furloughed for one hour a week and for one week only and a claim could be made.

I'm referring to this link https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus... where is states:

Using minimum furlough periods

Until 1 July, any employees you place on furlough must be furloughed for a minimum of 3 consecutive weeks. When they return to work, they must be taken off furlough. Employees can be furloughed more than once, but they must be furloughed for a minimum of 3 consecutive weeks each time they are furloughed.

From 1 July, agreed flexible furlough agreements can last any amount of time. Employees can enter into a flexible furlough agreement more than once.

Where a previously furloughed employee starts a new furlough period before 1 July this furlough period must be for a minimum of 3 consecutive weeks. This is the case regardless of whether the 3 consecutive week minimum period ends before or after 1 July.

The final sentence states exactly what you explained in your response, I agree with your answer in that respect 100%.

Thanks very much for your feedback. I've drafted a newsletter for clients and want to be absolutely clear on this aspect as it's pretty fundamental.

@ newmoon.

(1) You say:-

"For example an employee could be furloughed for the week beginning 13th July only and a claim could be made for that one week, it does not need to be for three consecutive weeks from 1st July onwards.

Is that your understanding too please?".

Yes, that is the correct position.

(2) You then say:-

"Likewise under Flexible Furloughing in theory an employee could be furloughed for one hour a week and for one week only and a claim could be made".

Yes again, you understand correctly.

Basil.

You didn't say 'should' either. I assume that you mean replace 'have to' with 'can'.

The second furlough period (in June) has to be at least 21 days (according to the article), so it has to start before 10 June.

Making the claim is really quite simple and only requires a total amount. Doing the calculation to get this amount is a complete nightmare. I have been using the HMRC calculator and the figures it churns out are different to my expectations, although basic pay for monthly staff is the same. I am assuming that adding these numbers up and plugging them into the claim is the best way to go.

I dread anyone looking at my calculations. I've "done my best" in very difficult circumstances. And I can justify it. I find the worst thing is HMRC insisting on working in "hours" all the time as opposed to pay. Totally a pain with 4 x weekly as well.

Working as a small bureau is not easy with many clients and claims. All with the usual HMRC threat lurking in the background.

And what about the ZERO hours? no mention of that. I'm waiting for instructions with a client who has 25 young staff in the hospitality trade who I can see he will part Furlough all. Presumably it will be based on average hours x worked hours

Of course HMRC in their "example" of Part Furlough is a lovely ordinary employee on £3K working 40 hours and paid calendar month. Simple!

I've been trying to understand zero hours calculations too. Seems to be based on the same higher of 2019-20 average or this time last year like before. Not tried to work through an example yet though.

Is example 2.1 the nearest thing for an employee on a monthly salary?

None of the examples ever seem to deal with this, which is of course not that uncommon, surely..

Is there a minimum furlough period after 1 July? The guidance merely talks about claim periods.

If an employee was furloughed for at least 3 weeks prior to 30 June, how long must they be furloughed for after 1 July to qualify? Is there a limit?

Very useful article - thank you.

In a situation of a company with the only employee who is the Director - his work is about to disappear almost totally from here on because of where he is in the supply chain. He has not been able to furlough himself until now as he's been finishing orders. He won't be furloughed for 3 weeks before the end of June 2020, so he cannot make a claim under the first scheme for a period of 3 weeks. If the scheme is closed to employers who haven't made a claim at all how can they now make a claim? Would they put in a claim for zero up to 30th June?

He won't be able to claim under the new scheme.

It was made very clear that this was what was going to happen. The last date to start a first period was 10th June.

I read this and didn't take any of it in.

My brain is furloughed as it's had enough.......

Some employers have, since March, known that redundancies are the end game but have helpfully kept employees on furlough. Pubs for example might have ZERO income and therefore need to be advised to consider lay-offs no later than 31 August if they cannot afford the furlough top-up. Expect job-seekers numbers to take-off from September 2020

If employees are still working full time in July do we still have to complete the box for the number of hours worked?

Do I have to get this info from each employer? I would like to know in advance if the claim forms are trickier and what additional information I will need.

Thanks

I spoke with HMRC last week as I was concerned on getting the information right for the various payrolls I am processing. They advised that for zero hour and variable employees, we should be looking at the same week last year, or the average hours, whichever is higher, as previously advised in the first stage of furlough claims. I've taken this to mean that if I have an employee who has been furloughed on an average 20 hour per week, they come back to work from the 1st July for ten hours in the first week, I will be processing 10 hours pay at the new rate of minimum wage, then processing 10 hours at the same rate for the same week in the previous year or their average pay which we have previously calculated and claimed. So effectively, 80% of the ten hours they haven't worked.

I think my biggest headache is going to come from the Directors who are on the £700ish a month which they have been getting 80% for as under minimum wage, it works out to about 19 hours a week.

This site and the advice has really helped me through the last three months so thank you to all contributors and question posers, I would have been lost without it!

Hi. So If someone does 5 days a week can they come back for 1 day = 20% of their usual hours, and then you can claim the other 80% as furlough - so the same amount as in previous months? Or is it you can claim 80% of the 80%? I'm not totally clear.

Hi. So If someone does 5 days a week can they come back for 1 day = 20% of their usual hours, and then you can claim the other 80% as furlough - so the same amount as in previous months? Or is it you can claim 80% of the 80%? I'm not totally clear.

Hi. So If someone does 5 days a week can they come back for 1 day = 20% of their usual hours, and then you can claim the other 80% as furlough - so the same amount as in previous months? Or is it you can claim 80% of the 80%? I'm not totally clear.

Be careful. If they are weekly hours but paid monthly you must not use what would seem a simple mathermatical calculation like you have outlined. You must follow the HMRC guidance in calclating it over the 31 or 30 days of the month to get average monthly hours. Then you calculate working hours. and deduct one from the other leaving Furlough hours to be paid at 80%

Your way of looking at it may seem straightforward but is not correct.

It confused me until I sat down and used HMRC's example of multiplying by this and dividing by that. Once I got to grips with that I did a simple spreadsheet that calculates. Now I am NOT a spreadsheet expert but I managed it.

The speaker on AW a couple of weeks back said just dont think like you used to think

Right. But I'm after clarification on what can be claimed on furlough. I was using simple figures to illustrate the bit I'm not clear on. If someone has been paid at 80% in previous months without top pay to full pay, can you now claim the same amount of furlough but pay them for the 20% they are now working. Or does the furlough claim come down? Can you still claim for 80% of their normal hours they are not working or being paid for, or do you claim 80% of 80%.

Plugging in some figures - saythey usually earn £1000 and have been paid £800 while furloughed and £800 claimed from CJRS. Can you now pay someone £200 for 20% of normal hours worked but still claim for the 80% of their hours they are not working and so pay them £800 'furlough' and claim £800. Or would the furlough claim go down to 80% 0f the £800 = £640. So you would pay £840 (£200 + £640) to the employee and claim £640. Or would it be pay $1,000 to the employee (£200 + £800) and claim £800?

I don’t know if I’m over thinking this or it just doesn’t add up.

So if someone is fully furloughed they are on 80% of their wages but if they are flexi furloughed and you follow the government guideline below they only get 80% of 70% of their wages for the furlough part.

Using their own figures below

37*80% = 29.6 or rounded up to 30

37*70% = 25.9 rounded up to 26

37/7*5 = 26.42 rounded down to 26

This gives you usual hours and then you take what’s worked off usual hours and claim 80% of that?

So instead of 37 hours less 7 hours worked = 30 hours at 80% you have ‘usual hours’ of 26 less 7 worked = 19 hours at 80%

???

Surely that can't be right?

2.1 Example of how to work out usual hours for employees who are contracted for a fixed number of hours

An employee is contracted to work for 37 hours in each week, across 5 working days. The employee is paid weekly. The employer looks to make a flexible furlough claim for the period between 1 July 2020 to 10 July 2020 (10 calendar days). There are two pay periods partially in this claim period:

• 29 June to 5 July

• 6 July to 12 July

The employer calculates the usual hours for the days in each pay period that are in the employer’s claim.

The employer is calculating on a pay period basis so they must round the nearest number of usual hours for each pay period up or down to the nearest whole number.

The employer first calculates the usual hours for the days they are claiming for in the pay period 29 June to 5 July as follows:

1. Start with 37 hours (the hours your employee was contracted for at the end of the last pay period ending on or before 19 March 2020)

2. Divide by 7 (the number of days in the repeating working pattern, including non-working days)

3. Multiply by 5 (the number of calendar days in the pay period (or partial pay period) the employer is claiming for – this is a partial pay period) = 26.43

4. Round up or down to the nearest whole number if the outcome isn’t a whole number = 26

The employer next calculates the usual hours for the days they are claiming for in the pay period 6 July to 12 July as follows:

1. Start with 37 hours (the hours your employee was contracted for at the end of the last pay period ending on or before 19 March 2020)

2. Divide by 7 (the number of days in the repeating working pattern, including non-working days)

3. Multiply by 5 (the number of calendar days in the pay period (or partial pay period) the employer is claiming for – this is a partial pay period) = 26.43

4. Round up or down to the nearest whole number if the outcome isn’t a whole number = 26

Does anyone know if there is an appeal option for anyone who missed the 31 July cut off ?

Despite all of our regular communications about furlough, and the barrage of information in the media, we have one client who has just realised he can claim. However, we are beyond the 31 July.

Any guidance welcome !!