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Adding value by
solving business problems.

Adding value by
solving business problems.

Latest News

Coronavirus Future Fund launched
20/05/2020 - More...
Last month, the Chancellor, Rishi Sunak, announced a number of measures to help innovative firms survive the Coronavirus

Maximum loan under CLBILS increased to £200m
20/05/2020 - More...
The scope of the Coronavirus Large Business Interruption Loan Scheme (CLBILS) is to be extended from 26 May 2020. The

Working safely during coronavirus
19/05/2020 - More...
The government has produced guidance to help employers, employees and the self-employed in England understand how to

National Minimum Wage and training time

Source: HM Revenue & Customs | | 07/04/2020

An interesting quirk of the Coronavirus Job Retention Scheme is that furloughed workers are not entitled to the minimum wage. HMRC's guidance categorically states that 'individuals are only entitled to the National Living Wage (NLW)/National Minimum Wage (NMW)/ Apprentices Minimum Wage (AMW) for the hours they are working or treated as working under minimum wage rules.'

This means that workers that earned the minimum wage will end up with less than the hourly minimum wage when they are furloughed. There is also no requirement for their base salaries to be increased to reflect the new minimum wage rates that came into effect on 1 April 2020. These rates would obviously need to be paid if and when the furloughed workers start working again.

However, if time is spent on training whilst furloughed then the relevant Apprenticeship Minimum Wage, National Living Wage or National Minimum Wage must be paid for all relevant hours and the minimum wage increases from 1 April 2020 must also be considered.

If there is a shortfall between the amount paid whilst an employee is on furlough leave and the appropriate minimum wage, the employer will need to cover the difference.



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Milton Avis LLP
Chartered Accountants
Pitt House
120 Baker Street
London W1U 6TU

Tel : 020 3219 5860
E-mail : This email address is being protected from spambots. You need JavaScript enabled to view it.

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