Under the Coronavirus Job Retention Scheme the HMRC will reimburse Employers for 80% of their furloughed workers wage costs, up to a cap of £2,500 per month.
Please note that it is at the Employers discretion to choose to top up this salary to enable their Employees to obtain their full salary during this period.
Oxford English dictionary defines ‘furloughed' as "(of a worker) laid off, especially temporarily". In designating the Employees as furloughed workers the employer is laying them off, i.e. sending them home as there is no work, for a period whilst retaining them as Employees.
If an Employer / Parent intends to use the scheme, they will need to discuss with the relevant Employee / Nanny that they will be reclassified.
This change remains subject to employment law and depending on the employment contract, may be subject to negotiation.
The Employee / Nanny must be kept on the payroll rather than being removed, but will no longer work for the Employer / Parent during this period.
The advantages of the above scheme is that it allows Employees to keep their jobs. They are not being made redundant. Employers that are now under temporary pressure can claim a grant to cover their Employees' wages which they will need until the Coronavirus crisis passes, but are currently unable to provide work for.
If an Employee / Nanny has been made redundant after the 28th February due to the Coronavirus their employer can agree to re-employ and place them on furlough instead. They'll still be able to claim a grant to cover 80% of the Employee / Nannies monthly earnings, up to a monthly cap of £2,500, for further details please click here
Way2paye are pleased to announce that on 31st March 2020 confirmation was received regarding the ability to claim from the ‘Coronavirus Job Retention Scheme' for all Nanny / Domestic staff on a PAYE Scheme by Mr Louis Flood. He is a Parliamentary Assistant to Chris Heaton-Harris a Member of Parliament.
You must decide if you wish to use this scheme and absorb the cost until you can make a claim when the online portal opens at the end of April from the HMRC, for further details please click here
Way2paye will encourage Employers / Parents to make the claim with the HMRC when the online portal opens to avoid delay. Where possible, Way2paye will make the claim, but due to the additional work involved we cannot guarantee any timescales.
We appreciate this is an extremely difficult discussion for you to make and we are thinking of you and wishing you and your families all the best over these very difficult weeks ahead.
To view our example/template furlough leave letter please click here
You can download this as a handy printable PDF