Neils Limited Chartered Accountants Tel:01442 24 24 91 Hemel Tel:0208 343 6091 London
Neils LimitedChartered AccountantsTel:01442 24 24 91 HemelTel:0208 343 6091 London



FURLOUGH   Changes Ahead


JULY 2020

This is a reminder that you can start to flexibly furlough eligible employees from 1‌‌‌ ‌July onwards.

From 1‌‌‌ ‌July, you can claim a more flexible grant for any employee you have previously received a CJRS grant for, and who now returns to work on reduced hours. You can also continue to claim for employees who stay fully furloughed.

What you need to do next

  • claim for periods ending on or before 30‌‌‌ ‌June, by 31‌‌‌ ‌J‌ul‌y – this is the last date you can make those claims
  • agree the hours and shift patterns that you want your employees to work from 1‌‌‌ ‌July
  • pay your employees' wages for the time they’re in work and apply for a job retention scheme grant to cover the remainder of their usual hours for which they are still furloughed
  • claim for further furlough periods as needed – the first time you will be able to make a claim for days in July will be 1‌‌‌ ‌July.



AUGUST 2020 : Employer  will still be able to claim the lower of 80% of staff wages or £2,500 a month  BUT from   1 August  employers will pay for their own pension contributions and National Insurance contributions ( the employer share).


SEPTEMBER 2020:  reducing the furlough to the lower of 70% or £2,187.50 a month in September


OCTOBER 2020:  further reducing the furlough to  the lower of 60% or £1,875 in October, with the scheme closing on 31st October.





1. Eligibility for flexible furlough

From 1 July 2020 only employees that have been furloughed previously can  be furloughed from 1  July 2020 onward.


 2. Procedure for flexible furlough

The employer should discuss with employees ; specifying  which hours they will be expected to work.

The agreement should be confirmed in writing and retained  for five years. 


3. Records Keeping

Employers have  to keep records of the number of  hours their employees work and the number of hours that they are furloughed during flexible furlough. We suggest you keep a weekly/ monthly  record sheet/ spread sheet.


4. Maximum period of  flexible furlough

The  period that employers claim for must be for a minimum period of seven calendar days and there is no maximum other than the £2,500 cap. The agreement can  be varied   to agree a revised split. 


5. Claiming

The  furlough scheme will allow employers to recover the remainder of pay  to a maximum cap. Wage caps are proportional to the hours an employee is furloughed. So for example, an employee is entitled to 40% of the £2,500 cap if they are placed on furlough for 40% of their usual hours. Hence, the employer can recover a  maximum of £1,000  (£2,500x 40% ).

The amount that the scheme will cover will be reduced  from September 2020 as described above.


 6. Calculating working hours

There are two different method  that  can be used to work out the employees’ usual hours, depending on whether they work fixed or variable hours.

FIXED hours  : Where the employee’s working hours are fixed the reference period for calculating their hours is the hours they were contracted to work  at the end of the last pay period ending on or before 19 March 2020. This is before the Covid-19 furlough announcement was made.

VARIABLE hours : Where an employee works variable hours  then we  will use the higher of:

  • the average number of hours worked in the tax year 2019 to 2020; and
  • the corresponding calendar period in the tax year 2019 to 2020.





109B High Street

Hemel Hempstead

Herts HP1 3AH

Tel: 01442 242491


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Solar House

915 High Road

London  N12 8QJ

Tel: 0208 343 6091







Making an appointment

If you have an enquiry or wish to make an appointment please contact us:


London : 0208 343 6091

Hemel :  01442 24 24 91





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