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The Independent Automotive Aftermarket Federation

Updated furlough agreement template from Lawgistics

Date: Thursday 27 May 2021

The requirement from HMRC is that the employer should have had a PAYE payroll scheme in place on or before 2 March 2021 in order to be able to claim from May 2021 onwards.

Following on from Lawgistics information regarding the changes to the furlough scheme, they have produced an updated version of the furlough agreement template (see attachments below).

For the period starting May 2021 and to the end of the scheme on 30 September 2021, as currently envisaged, furlough claims can be made even if the scheme has not been used before by the employer or the employee claimed for has not previously been on furlough.

The requirement is that the employer should have a PAYE payroll scheme in place on or before 2 March 2021 in order to be able to claim from May 2021 onwards.

Qualifying employees for claims starting from May 2021 should have been employed on 2 March 2021 and a PAYE RTI payment notification should have been made to HMRC in their respect between 20 March 2020 and 2 March 2021.

With the gradual return to normality, it is important to stress that the purpose of the furlough scheme is to support employers “whose employment activities have been adversely affected by the coronavirus and coronavirus disease or the measures taken to prevent or limit its further transmission” as the 7th Treasury Direction states. Businesses should be prepared to demonstrate the impact of Covid-19 if their furlough is queried by HMRC.