Covid 80% salary

[Babyshine2020]

Please could somebody explain this.

My partners salary is £67500 and he's been furloughed today but his company isn't helpful.

Will he receive £2500 or with it be £2500-40% tax and NI?

We can't find a solid answer and trying to plan our finances!

2500 is the gross pay, taxed as usual. Given that we are in month 1 of the tax year, tax may be lower in your case. Obviously cumulatively in the whole year tax will be similar

It’s 2500 minus tax and NI. See attached.

Not sure why this didn’t attach

£2.5k is a gross amount and subject to tax, the rate of which will not be 40%, as month 1 of new tax year.

(Had this happened, say in January, then tax would have been charged at 40% as earnings during the tax year would have exceeded the threshold at which you start paying at 40%).

Remember that NI is deducted first and then the first £12,500 is tax exempt. You are taxed at 20% up to earnings of £37.5k. So, first £1,042 after paying NI is exempt then taxed at 20% on remainder.

This assumes no pension contributions so, if any, you will need to adjust for them.

I was assuming payment for this month had been received and starting from next month.