Another Weekend update to Job Retention Scheme

It wouldn't be the weekend without another Coronavirus Job Retention Scheme update!  Along with the Government's welcomed annoucement on Friday that the scheme would be extended until the end of June (in line with possible phased lifting of restrictions), HMRC have issued updated guidance, which has now been split between two pages - one concentrates on eligibility, etc and the other concentrates on how to calculate grants.  There is also a HMRC booklet on how to calculate the grant and make the claims.

There are now example calculations for different types of employees, being paid differently, etc, along with the calculation of employer NIC and pension contribution grant.  You may note that the pension contribution grant follows the qualifying earnings basis - which is unlikely to match your own - meaning you must deduct off the qualifying earnings before calculating the grant available.

The only other thing I would like to point out is the position on holidays - it seems that furloughed employees can take holiday, although they will have to be paid their full pay rate, but it shouldn't exclude them from furlough if the minimum period is met as a whole - will try to get some more information on how that will work.

All the changes/updates/examples are now included in the BUFDG document.

Enjoy!  Take care and any questions, just email me.

UPDATE - The Department for Education has published this guidance for the use of various Goverment measures for the whole sector.  The guidance specifically relating to HE is at the bottom of the page.

To summarise, the following 5 conditions should be met to furlough staff:

• the employee works in an area of business where services are temporarily not required and whose salary is not covered by public funding
• the employee would otherwise be made redundant or laid off
• the employee is not involved in delivering provision that has already been funded
• (where appropriate) the employee is not required to deliver provision for a child of a critical worker and/or vulnerable child
• the grant from the Coronavirus Job Retention Scheme would not be duplicative to other public grants that the HE provider receives and would not lead to financial reserves being created

Most importantly it states that furlough grants should not be used where public funding is already provided in the form of tuition fees.  Given that Student Loans are paying term 3 fees - it is unlikely that any academic/related staff can be furloughed (which we believe is appropriate).

There is recognition that HE funding is difficult to assess and in this case, DfE provides a 'guiding principle'

HE providers should not seek to furlough a higher proportion of their wage bill than could reasonably be considered to have been generated through commercial income, including from non-public research grants and contracts.

EXAMPLE - if 40% of your income is from non- public funding then you can only furlough employees that represent 40% of your wage bill, as long as the 5 conditions above are met.

In addition, there is further clarification regarding researchers.  The wording states that where research work has been 'paused' and, e.g. a no-cost extention to grants requested - HEs will not be receiving payments towards research staff costs.  In that situation, HEs can 'consider their eligibility and apply for the wide range of financial support ... including the Coronavirus Job Retention Scheme' again meeting the 5 conditions above.