A full-time working employee is entitled to a statutory minimum of 28 days holiday each year.  Ordinarily the legislation splits this entitlement to statutory holiday into 20 days and 8 days, and there are some differences in the rules that apply:

• the 8 days can be carried forward into the following leave year if a written agreement exists between the worker and the employer
• generally, the 4 weeks cannot be carried into future leave years, so employers must facilitate these weeks being taken within the relevant leave year
  
  

The Government has passed new emergency legislation to ensure businesses have the flexibility they need to respond to the coronavirus pandemic and to protect workers from losing their statutory holiday entitlement. 

Where it has not been reasonably practicable for the worker to take some or all of the 4 weeks’ holiday due to the effects of coronavirus, the untaken amount may be carried forward into the following 2 leave years.  In considering whether it is reasonably practicable for an employee to take their leave employers must consider:

• whether the business has faced a significant increase in demand due to coronavirus that would reasonably require the worker to continue to be at work and cannot be met through alternative practical measures
• the extent to which the business’ workforce is disrupted by the coronavirus and the practical options available to the business to provide temporary cover of essential activities
• the health of the worker and how soon they need to take a period of rest and relaxation
• the length of time remaining in the worker’s leave year, to enable the worker to take holiday at a later date within the leave year
• the extent to which the worker taking leave would impact on wider society’s response to, and recovery from, the coronavirus situation
• the ability of the remainder of the available workforce to provide cover for the worker going on leave
  
  

Employers should do everything reasonably practicable to ensure that the worker is able to take as much of their leave as possible in the year to which it relates and where leave is carried forward it is best practice to give workers the opportunity to take holiday at the earliest opportunity.

When employers agree with an employee to carry leave forward due to the coronavirus, they will continue to accrue holiday in the next leave year. As such, they will have 2 entitlements, the carried forward holiday and their entitlement for the new leave year.

When an employee with multiple entitlements takes holiday, it would generally be best practice to allow the employee to take holiday from the entitlement that expires first. In practice, this means they should take the carry forward holiday first as this lasts for 2 years.  When taking carried forward holiday employers must still ensure that the worker receives their full regular entitlement in the leave year to which it relates, in addition to any carried holiday taken.
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Carried forward holiday leave is still subject to the usual rules around payment in lieu.  An employer must facilitate the worker taking their annual leave and not replace it with a financial payment.  The only exception to this is if the employee leaves in which case the unused holiday should be paid at the normal. 

Use the Government’s eligibility checker to confirm whether you are entitled to make a claim. 
 
The claims portal for the existing Self-Employed Income Support Scheme (“SEISS”) went live on 13 May 2020 to provide the self-employed with a taxable grant worth 80% of their average monthly taxable profits capped at a total of £7,500.  Payments have followed within six working days of making the claim.  If you haven’t yet claimed the grant then you must do so before 13 July 2020. 
 
On 29 May 2020, the Chancellor announced an extension to the existing SEISS to provide a taxable grant for a further 3 months’ worth of your average monthly profits.  The grant will be at a reduced level of 70% of your average monthly trading profits capped at a total of £6,570.  This will be the final grant to be paid under this scheme and the claims portal will go live in August 2020.
 
In order to make your claim you will need:

• Your Self-Assessment Unique Taxpayer Reference (this is a 10-digit reference) and National Insurance Number, these can be found on your Tax Return or on most HMRC correspondence
• Your Government Gateway user ID and password - if you do not have a user ID, you can create one when you check your eligibility using the link above
• UK bank details
  • bank account number
  • sort code
  • name on the account
  • your address linked to your bank account

How to claim
You’ll need to log onto your Government Gateway account in the normal way.  Once logged on you will have to self-certify to HMRC that your business has been adversely affected by coronavirus and enter your relevant bank details.  Your grant should then follow within six working days.
 
There is no evidence required of the effect on your business although we expect HMRC to run checks in the coming months with any dishonest claims being recovered with a penalty.
 
If you’re unable to claim online you should contact HMRC for help.
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If you receive texts, calls or emails claiming to be from HMRC offering financial help or a tax refund and asking you to click on a link or to give personal information, it is a scam.  Please remain vigilant with your personal information.

The Government have confirmed that the grant under the Coronavirus Job Retention Scheme (“CJRS”) can still be claimed for holiday taken during period of furlough.

If an employee on furlough takes annual leave, an employer must calculate and pay the correct holiday pay in accordance with the contract.  Where this contract rate is more than what the employee is receiving on furlough then the employer must pay the difference.
 
The Government has confirmed that taking holiday does not break the furlough period and the employer can continue to claim the grant from the government under the CJRS for the period of holiday.  The cost to the employer is therefore only the top up from the claim under CJRS and the normal pay rate for holiday.

The employer is able to insist that holiday is taken provided they give the correct notice which is twice the amount of holiday to be taken.  For example to insist one week of holiday is taken, two weeks’ notice must be given.  Due consideration should be given to the employee to consider whether any social distancing or self-isolation restrictions the employee is under would prevent the employee from resting, relaxing and enjoying leisure time, which is the fundamental purpose of holiday.

For bank holidays, where a bank holiday falls within a period of furlough and the employee would have usually worked the bank holiday, their furlough will be unaffected by the bank holiday.

However, if the employee would usually have had the bank holiday as annual leave, there are two options on which the employer and employee should agree:
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• The bank holiday can be taken as annual leave.  The employee should be paid the correct rate of holiday pay in line with their contract and the employer can claim back the grant under the CJRS; or
• The bank holiday can be deferred to a later date.  The employee should still receive their full holiday entitlement.

 
We recommend that employers consider annual leave carefully for any employees that are on furlough before they return.  If holiday is not considered then an employee could be away from work for several months on furlough, and then return with their full holiday entitlement to be taken when the business is back up and running.
 
There have also been some changes to the carry forward of holidays into future years that may impact on this issue, and further details relating to these changes can be found here.

The Coronavirus Job Retention Scheme was extended to 31 October 2020 earlier in May and on 29 May 2020, the Chancellor announced more details about this extension to the scheme.  The new guidance is aimed at allowing employers to bring back staff on a part time basis, and involves employers contributing towards the cost of the scheme on an increasing basis. 

The scheme will close to new entrants from 30‌‌ June 2020.  From this point onwards, employers will only be able to furlough employees that you have furloughed for a full three-week period prior to 30‌‌ June 2020.  This means that the final date that you can furlough an employee for the first time will be 10‌‌ June 2020 for the current three-week furlough period to be completed by 30‌‌ June 2020.

Employers will have until 31‌‌ July 2020 to make any claims in respect of the period to 30‌‌ June 2020.

Flexible furloughing
A condition of the original scheme was that furloughed employees could not do any work whilst on furlough.  With effect from 1‌‌ July 2020, in order to assist employers in bringing employees back into work, employers will have the flexibility to bring previously furloughed employees back to work on a part time basis.  The Government will continue to contribute to wages for any of their normal hours they do not work at 80% up to a cap of £2,500 per month although this contribution reduces over coming months as explained below.

The employer can decide the hours and shift patterns that your employees will work on their return and you will be responsible for paying their wages in full for the hours they are working.  This means that employees can work as much or as little as your business needs, with no minimum time that employers can furlough staff for.
There are some key points to record and retain for the furloughed employees:

• Any working hours arrangement that you agree with the employee must cover at least one week and be confirmed to the employee in writing.
• When claiming the grant for the furloughed hours, employers will need to report and claim for a minimum period of a week but employers can choose to make claims for longer periods.
• Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.
  
  

If your employees are unable to return to work or you do not have work for them, they can remain on furlough and you can continue to claim the grant under the existing rules.

Employer contributions
From 1 March 2020 the Government have funded 80% of wages for furlough staff up to a cap of £2,500 per month as well as the employers’ national insurance and pension contributions.  Employers are now being asked to share the cost of the furlough wages as follows: 

• June 2020 - No change to the current position.  i.e. the Government will pay 80% of wages up to a cap of £2,500 per month as well as the employers’ national insurance and pension contributions for the hours the employee doesn’t work. 
  
  
• July 2020 - the Government will continue to pay 80% of wages up to a cap of £2,500 per month as well as the employers’ national insurance and pension contributions for the hours the employee doesn’t work. Employers will have to pay employees for any hours they work under the flexible furlough scheme explained above. 
  
  
• August 2020 - the Government will continue to pay 80% of wages up to a cap of £2,500 for the hours the employee does not work.  However, employers will now be expected to pay the national insurance and pension contributions for hours not worked as well as all costs for any hours worked under the flexible furlough scheme.  
  
  
• September 2020 - the Government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work.  Employers will pay the national insurance, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500.  Employers will also pay all costs for any hours worked under the flexible furlough scheme.
  
  
• October 2020 - the Government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay the national insurance, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500.  Employers will also pay all costs for any hours worked under the flexible furlough scheme.
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• For all periods, the cap on the furlough grant will be proportional to the hours not worked if the employee is working some hours under the flexible furlough scheme.

​Ashgates have passed their Cyber Essentials Certification for another year. We take Cyber Security very seriously and this demonstrates we are continually working to secure our business and its data.

Cyber Essentials is a Government backed scheme, helping organisations improve their defences & demonstrate publicly, their commitment to Cyber Security.

Having reviewed our own policies, procedures and defences it is great to know that we not only comply but also exceed the requirements in many areas.

If you would like to see how Cyber Essentials can benefit your business, working to secure your customers data and demonstrate your commitment to Cyber Security, please get in touch with Ashgates IT for more information.

HMRC have published the updated rates for mileage claims on company cars that take effect from 1 June 2020.

You can use the previous rates for up to one month from the date the new rates apply.  The advisory fuel rates per mile for journeys undertaken on or after 1 June 2020 are: