The Government’s 80% wage pledge

[upthealbion1970]

An intelligent employer.

6 of our 12 branches closed, with some staff from the remaining sites also now furlough. I can’t see the remaining branches still being open this time next week once the car/van MOT is suspended for 3 months.

 

[Blue Valkyrie]

Problem is the words honourable employers. Both my wife and daughter, who work for the same company are getting a letter tomorrow laying them off tomorrow. At least today was payday. Unfortunately they have a laying off clause in their contract which their employer is going to use which avoids the 80% payment. All employees will be gone and he will basically mothball the business.

What am I missing about the 80% pay from the Government ? What is it that stops a firm using the scheme ?

 

[Gazwag]

This is so wrong as the Government will pay 80% of their wages so why are they doing this ?

Because they can, stupid is as stupid does, they have a month for HMCE to sort out the repayment portal until next pay day and surely Grant's will be extended to all businesses soon but they cant see that

 

[Gazwag]

If P45’s are issued you’re quite right.

Which would be madness by the business, are they thick? They can keep on your wife and daughter on the books at 80% wages, at zero cost to the business. Keeping good people, creating a bit of goodwill, saving the hassle of recruiting when the crisis is over, and at the same time seeing employees alright for money. Taking a few minutes a month to run payroll. It can still be mothballed.

If the terminations transpire, very sorry to hear that for your family.

Thanks, we will be ok wife if necessary can walk into an NHS job due to her qualifications and experience, although she hasn't worked for the NHS for 30 years. Daughter was applying for local Tesco and other jobs last night.

It's not a big business about 10 employees but the problem is one of the people making the decisions isnt a very bright business person. Never know things might change today.

 

[Gazwag]

What am I missing about the 80% pay from the Government ? What is it that stops a firm using the scheme ?

Nothing stops firm, the worry is how long HMRC will take to set up the new portal and experience suggests it might be a while so employers may have to wait for refunds. Cashflow issues and debts to service have to be considered, I can see that. Unfortunately if contacts of employment contain certain conditions an employer can choose to do it.

 

[Beach Hut]

Because they can, stupid is as stupid does, they have a month for HMCE to sort out the repayment portal until next pay day and surely Grant's will be extended to all businesses soon but they cant see that

Some companies are making really poor decisions that will cost them in the long term far more.

Hopefully your daughter and wife will get some other work soon.

 

[Springal]

Some companies are panicing and making very poor decisions. I'm aware of a Sussex fairly big estate agent that has made a lot of staff 'furlough' but expects them to be available via phone and to still check emails to help managed rental property problems

 

[Blue Valkyrie]

If I was 55 or over, I'd be taking a draw down from my pension pot and telling my boss to go swivel.

Sadly that situation is a couple of years away.

 

[Weststander]

Nothing stops firm, the worry is how long HMRC will take to set up the new portal and experience suggests it might be a while so employers may have to wait for refunds. Cashflow issues and debts to service have to be considered, I can see that. Unfortunately if contacts of employment contain certain conditions an employer can choose to do it.

The software (of PAYE in reverse, paying employers) is being created as quickly as possible, the government has said April. An employer stating the end of April is exaggerating, with no more knowledge than us, for a personal aim?

 

[beorhthelm]

What am I missing about the 80% pay from the Government ? What is it that stops a firm using the scheme ?

ees complicated. it seems the qualification is your business is going under without the support, staff will all be laid off, so put them on furlough and pick they'll up the 80%. however, what if you can sustain half the business? what if you have substantial debts and bank covenants kick in so you cant take more debt on? what if you have surplus cash and dont qualify, so will burn your cash in a few months (then have to shutter the business)? unless we know the ins and outs of a business's finance, its difficult to pass judgment.

 

[Gazwag]

The software (of PAYE in reverse, paying employers) is being created as quickly as possible, the government has said April. An employer stating the end of April is exaggerating, with no more knowledge than us, for a personal aim?

I just hope they take a common sense approach in the set up, as far as I am concerned I am quite involved in our office payroll services for almost 200 clients and I just hope they take the view that agents can access the new portal and it will be linked to existing PAYE authorities.

 

[Weststander]

I just hope they take a common sense approach in the set up, as far as I am concerned I am quite involved in our office payroll services for almost 200 clients and I just hope they take the view that agents can access the new portal and it will be linked to existing PAYE authorities.

I run several payrolls, the RTI system is so simple.

That's a good point, all the commercial payroll software providers will need to very swiftly update their products.

 

[Blue Valkyrie]

My company insists we are key workers, and in their opinion can't work from home.

We have the option of 100% unpaid leave.

They will not use the 80% scheme as they reckon this is only for people who would be made redundant.


What are the real reasons for them not offering the "80% and stay at home" option ?

Is it that if they have a lot of money in the bank then they can't use the scheme ?

Or are they just not understanding things ?


Or is it me that doesn't understand it ?

 

[Beach Hut]

Both my sons are now not at work and on 80% salary for the foreseeable future

 

[Dick Swiveller]

Just been officially furloughed so I suppose I can do something other than sit by my work laptop as has been the case this week.

 

[Official Old Man]

MORE DETAILS PLEASE.
I run a small business with three members of staff. They are all furloughed. I've worked out that they can be paid what they worked this time last year but how do I put that into the payroll. For instance, let's say 40 hours at £8.21. Do I insert those numbers and get £282.69 net, less 20% is £226.15? Or £6.57 and get £240.79. Also they are paid weekly, does that make any difference?

 

[Paulie Gualtieri]

Some companies are panicing and making very poor decisions. I'm aware of a Sussex fairly big estate agent that has made a lot of staff 'furlough' but expects them to be available via phone and to still check emails to help managed rental property problems

Is Taggart investigating?


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[Blue Valkyrie]

My company says the scheme is crap and they are not using it.

What is the devil in the detail that is putting them off ?

 

[Bold Seagull]

My company says the scheme is crap and they are not using it.

What is the devil in the detail that is putting them off ?

Could it be that the employees maybe required to work for the in any capacity over the coming weeks / months? Any company furloughing their staff are committing them to do nothing for the company. Some may feel they're better off retaining the ability to call on staff to work than go through this process? I don't know.

I already know of people being furloughed then getting emails asking them just to do this task, or forward some info. on etc. Strictly speaking this shouldn't be happening.

 

[Wrong-Direction]

I heard self employed with less than a full years tax, say 9months will be spread out over a year meaning you get even less?

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