Is the 2.5k government cap gross or net?

[Grobagsforever]

Does anyone know? So if I am furlonged would I receive 2.5k or 2.5k less tax? (I earn over the cap)

It's taxable

Thanks, do you have a source?

The chancellor repeatedly said it was taxable in the press conference.

Gross

www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

"Income tax and Employee National Insurance
Wages of furloughed employees will be subject to Income Tax and National Insurance as usual. Employees will also pay automatic enrolment contributions on qualifying earnings, unless they have chosen to opt-out or to cease saving into a workplace pension scheme.

Employers will be liable to pay Employer National Insurance contributions on wages paid, as well as automatic enrolment contributions on qualifying earnings unless an employee has opted out or has ceased saving into a workplace pension scheme."

Out of interest, why would anyone think it wouldn't be taxable? Anyone who is on a monthly wage of £2500 and continuing to work will be paying tax and NI as they normally would - there's no logical reason for furlough payments to be different.

@TheMemoryLingers I think the point is if you take home over 2.5k after tax (like my DH) then your wages will be substantially lower on furlough than if the cap was 2.5k after tax.

Yes that was my reason for asking. Good to get it clarified-thanks

Employers have the option to add the remaining 20% so it might be worth talking to them if you are going to be badly impacted by the drop.