Payroll for essential people

What is the government furlough scheme?

As part of its response to the COVID-19 pandemic, the government announced the furlough scheme in order to reduce the number of people made redundant during lockdown. This job retention scheme allows all employers with employees on a PAYE scheme to designate them as ‘furloughed’ in the case that their business has been significantly impacted by the coronavirus. This scheme is scheduled to run until the 30th June 2020, however, this may be extended depending on the circumstances.

Can any employee be furloughed?

An employer can choose to furlough any employee that was on the company’s PAYE on 19th March 2020. Zero-hour, apprentice and temporary contract staff are also eligible. Once the situation has been discussed with said employees, then a formal letter should be sent to them that states they have been furloughed. The employer should keep a record of this letter for at least 5 years. It is important that the furloughed worker provides written consent to be furloughed.

Can I bring someone out of furlough?

According to government guidance, you can rotate workers in and out of furlough, however, the period that an employee is on furlough must be at least 3 weeks long each time. Furloughed workers are not permitted to do any work for your company.

What pay are furloughed workers entitled to?

Furloughed workers will be kept on the payroll but take a temporary leave from work and will be entitled to 80% of their salary up to £2,500 per month. Employers may then choose to top up their employees’ wages to 100%, however, they are not obliged to do so.

How to apply for the furlough scheme

Applications for the furlough scheme went live on the 20th April. You can claim through the gov.co.uk website and will need to log in using the Government Gateway user ID and password you received when you registered for PAYE online. Your business should receive the money claimed within six working days of make an application.


Keep your employees happy by outsourcing your payroll responsibilities to the professionals at Essential Payroll. We offer payroll services that are tailored to your business to ensure accurate and timely payment and HMRC and tax compliance. To learn more, please don’t hesitate to get in touch with us today on 02382 023223.

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