Flexible furlough scheme confirmed by Treasury Direction

The Treasury Direction covering the Coronavirus Job Retention Scheme (CJRS) has been updated to cover the amendments to the original CJRS to allow for flexible furlough from 1 July 2020 until 31 October 2020 when the scheme is wound up.

Like the previous Treasury Directions dated 15 April and 20 May this document – The Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs {Coronavirus Job Retention Scheme) Direction sets out the legal framework for the CJRS: it is legislative in its nature as opposed to the HMRC guidance which is merely guidance.

It confirms the points from the guidance as updated on 12 June which we set out in the article Flexible Furlough Scheme. So, for example, it confirms that the cut-off date for making claims under the original CJRS which is in force until 30th June, is 31st July.  If confirms that an employer can only participate in the amended CJRS if it has made a claim under the original scheme by 31st July in relation to an employee who has been furloughed for a minimum of 3 weeks beginning on or before 10 June (except for family leave returners and armed forces reservists).  It also confirms that any flexible furlough arrangement must be made in writing or confirmed in writing, and the document must be kept until 30 June 2025.

Additionally, the Treasury Direction sets out at length the various methods of calculating the amounts which can be claimed under the scheme, dependent on factors such as whether or not the employee will be carrying out any work and whether they have fixed or variable hours/rates of pay.