November Changes to Furlough Update Explained

News on 11 November 2020

There has been a couple of important updates to the Coronavirus Job Retention Scheme during November. 

The latest update confirms that for claim periods starting on or after 1st December 2020, an employer will not be able to claim for any days on or after the 1st December during which the employee was serving a contractual or statutory notice period for the employer. This would also include notice for resignations and retirement.

There are also three notable things about the government guidance published on 10 November.

The first is the final paragraph:

From December 2020, HMRC will publish employer names for companies and Limited Liability Partnerships (LLPs), the company registration number of those who have made claims under the scheme for the month of December onwards.

This means that the Company name and registration number will be published on the HMRC website for anyone claiming through the furlough scheme from December 2020

The second is that the fraud warning

It is at the top of the guidance. With a very helpful link for those wanting to report any fraud.

HMRC will check claims. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information. You can report suspected fraud in the Coronavirus Job Retention scheme.

What you need to take away from these is that if you are claiming furlough from December, it will be a matter of public record to be published by the HMRC.

The fraud warning speaks for itself.

The third is future redundancies

The other important thing to note from the guidance is to do with redundancy. Furlough can currently be used for contractual or statutory notice periods. However, this guidance gives warning that the approach will after 1 December 2020. So, if you have delayed redundancies and intended on kicking them into the not so long grass of January 2021, you might have to reconsider those plans and look at this now.

Remind yourself of what we already know about furlough from 1 November from our published update here

More information

The links to the government guidance published on 10 November 2020 are below and are well worth a read

Check who you can put on furlough

Claim for wage costs through furlough

If you need specific help or have any queries, please don’t hesitate to contact us