Holiday entitlements if furloughed

The Coronavirus Job Retention Scheme (CJRS) commonly known as the furlough scheme is open to all UK employers and will now run until 31 March 2021. From 1 November 2020, employees will receive up to 80% of their salary for hours not worked with a review date in January.

One common question concerns holiday pay entitlement if furloughed. Employees will accrue holiday entitlement while they are furloughed and can also take leave while on furlough.

If a furloughed worker is not working on a bank holiday they usually take as paid leave, they can agree with their employer to either take it as normal or to take it at a later date.

An employer can continue to claim for a furloughed worker’s wages when the worker takes annual leave. If the holiday pay is more than the employee earned whilst on furlough their employer must pay the difference.

The government has also passed legislation to relax the restrictions on carrying leave between leave years during the coronavirus pandemic. Since 26 March 2020, where it has not been reasonably practicable for a worker to take some or all of the 4 weeks’ holiday due to the effects of coronavirus, the amount not taken may be carried forward into the following two leave years.

Source: HM Revenue & Customs Wed, 11 Nov 2020 00:00:00 +0100

Latest articles

Notifying cessation of self-employment

Any taxpayers that have ceased to be self-employed must notify HMRC of their change in status. There are a number of steps that must be followed if a taxpayer ceases trading as a sole trader or if they are ending or leaving a business

Submitting CIS nil monthly returns

The Construction Industry Scheme (CIS) is a set of special rules for tax and National Insurance for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘subcontractors’ and should be

Check employment status for tax

The Check Employment Status for Tax (CEST) tool can be used to help ascertain if a worker should be classified as employed or self-employed for tax purposes in both the private and public sector.

The service provides HMRC’s view if IR35 legislation

Class 1A payment deadline

Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees such as a company car. There is no employee contribution payable. If you provided taxable benefits to staff or directors your business is likely to have a