Furlough working example for reference

27 Mar 2020

Furlough working example for reference (EX ICAEW) :-

X Ltd employs Mr A at an annual salary of 24,000 so £2,000 per month. Mr A has opted out of auto enrolment.

Each month, Mr A currently receives net pay of £1,665 which is after deducting PAYE of £191 and employee NIC of £144. In this salary, the employer pays employers’ NIC of £174.

The available grant for the employer is the lower of:

(a)   80% of (£2,000+174), and

(b)   £2500

So a grant of £1,739.

If Mr A had not opted out of auto enrolment, X Ltd would also be making pension contributions on his behalf. If so, the grant is based on 80% of (Gross salary +Employers’ NIC + employers pension contribution paid), subject to the monthly cap of £2,500.

As ever, we are here for you.

Kind regards from the team at cbaSadofskys

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