Furlough take home pay

[Bezzyk7]

Hi

I've tried to search for an answer and have confused myself further.
With the government 80% furlough scheme can anyone tell me how much my take home pay will be?
My salary is 40k a year, gross pay £3333 and net normally around £2500
TIA

40 divided by 10
Equals 10%
4 k
4k x 8 equals 80%
32k
Divided by 12 equals monthly gross £2667
Depends on your tax code for net.
Plus minus pension etc.
But 32k minus tax code and divide by 12 will give you rough net.

lottie that isn’t correct as it’s capped at £2500 per month

Isn't it 80% of the £2,500?

Should add, it’s not clear yet, but that if that £2500 is net not gross, I’ll eat my hat!

We’ve been told the £2,500 is gross but then you wouldn’t apply 80% to it as well

I don’t think so Lizzie

The way it’s worded is that the 80% can equate to up to £2500, which is £37,500 annual gross salary

Basically, until it’s clarified best case is it’s based on 80% of £37,500 maximum and worst case is it’s 80% of £30,00 maximum

And is then NI and PAYE taken off that?

It's up to 80% of £30,000

Yes, as I understand it the £2,500 is gross so what you take home depends on your tax code

I’d be astounded if the £2500 is net but then again these are strange times

It's up to 80% of £30,000

Could you provide the link that confirms this please?

Use this
www.thesalarycalculator.co.uk/salary.php

I thought it was 80% of your monthly wage up to a maximum of 2.500

So it should be a simple sum of taking you wage and working out what 80% would be and if it's that or if it's more than 2.500 then that's the max.

That’s my understanding too ginky, but your gross wage not your take home pay

Theres a good example on the icaew website (Google icaew and fuough) if it helps. It hasn't been fully clarified but it seems to be £2.5k including pay and employers ni and pension I believe.

There's a useful breakdown of the whole scheme here - www.icaew.com/insights/viewpoints-on-the-news/2020/mar-2020/coronavirus-job-retention-scheme-furlough-guidance

It's 80% of your gross wage up to £2,500 which is then subject to the usual deductions (tax, NI, pensions)

The theory is that your employer should pay the remaining 20% of your salary so that you still receive full pay but they don't have to & can pay only the 80% they can claim back if they want to.

For company directors who are also employees dividends don't count only what is processed through the PAYE system.

There will be compliance checks carried out at a later date & those found to have falsified reports to HMRC will be liable to prosecution.

If it includes employers NI and pension contributions, what the employee gets is even less

I've worked it out as 80 % of your gross monthly wage.

Then tax insurance pensions deducted from that.

Our household has dropped hundreds each month but it's by far better than what some of my self employed friends have if they've recently gone self employed I think it's even worse 😳

Yeh it's low @Bearbehind and most won't top up to 100% no doubt. I've seen it being used first hand to help the company's bottom line, rather than protect the employees income

It is worrying that it’s potentially anything from £2500 per month take home to £2,000 less tax, employee and employer NI and pension

That’s a huge potential difference in what the employee gets

Hopefully it’s £2,500 gross then just subject to your personal tax code

It's £2.5k gross max, you reach that max at 80% of your salary, so about £1900 take home for you dependent on pension contribs etc

Up to your employer if they top it up.

@Lemonysherbet

most won't top up to 100% no doubt. I've seen it being used first hand to help the company's bottom line, rather than protect the employees income
What? This system has only been introduced very recently. How have you seen it used to help the company's bottom line already?

What? This system has only been introduced very recently. How have you seen it used to help the company's bottom line already?

It’s not difficult to envisage how furloughing staff now, even if you have to cover that cost in the short term, will protect the company’s long term profitability

Businesses can literally mothball all their surplus employees right now at no cost to them in the long term - why wouldn’t they do that?

@NotEverythingIsBlackandwhite some employers are paying staff who are WFH but saying they are furloughed & claiming back 80% of their wages.

HMRC advise to process payroll as normal either at 100% if employer topping up or at 80% if not.

Employer processes payroll at 100% for staff who are actually still working, pay them full salary but declare them as furloughed, claim back 80% of their salary - 100% work rate but only 20% of the cost for the employer.