2 weeks ago
Furlough deadline tomorrow for employers to backdate arrangements
The new extended Furlough Scheme runs on very similar lines to the last scheme, except that HMRC are beginning to toughen up on its use, and seek out its abuse.
IN ORDER TO QUALIFY there must be a contractually binding agreement in place. It need not be in writing, but it’s advisable to put it in writing as clearly it being in writing will assist when dealing with any questions.
It’s wise to discuss with staff who should be placed on the extended scheme, or who should be impacted by flexible furlough and when. BEWARE of accidental discrimination. We believe that this is especially risky for pregnant employees or those on maternity leave, but employers could also fall foul of age or disability protections without realising it.
Confirm in writing to staff who are furloughed, that they are furloughed. This one is important, and records of this, and hours worked must be kept for 5 years.
Agreements to furlough can be backdated to the 1st November PROVIDED they are in place by 13th November. AT THE TIME OF WRITING THAT MEANS TOMORROW.
Remember that for periods of furlough employees are not allowed to do ANY work.
From December, HMRC will be publishing the names of all employers using furlough. We believe this might be an attempt to draw whistle blowers out to report employers who are abusing the scheme.