This is how the furloughed workers scheme works - and if you still have to pay taxes

Furloughed workers are those whose employers cannot cover staff costs due to coronavirus (Photo: Shutterstock)Furloughed workers are those whose employers cannot cover staff costs due to coronavirus (Photo: Shutterstock)
Furloughed workers are those whose employers cannot cover staff costs due to coronavirus (Photo: Shutterstock)

In response to the coronavirus outbreak, the government has introduced a number of emergency measures to support workers affected by the pandemic.

Under the newly introduced Coronavirus Job Retention Scheme, the government will cover 80 per cent of the wages of millions of workers, up to the value of £2,500 per month.

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All employers in the UK will be able to access the scheme to continue paying the wages of staff that have been furloughed.

What are furloughed workers?

Furloughed workers are those whose employers cannot cover staff costs due to coronavirus, and as such they have been asked to stop working, but have not been made redundant.

Such employers are now able to access support to continue paying part of their staff’s wages, to avoid redundancies.

How does the scheme work?

If your employer intends to access the job retention scheme, they should discuss with you becoming classified as a furloughed worker.

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This would mean that you are being kept on your employer’s payroll, rather than being laid off.

Can I work while I’m furloughed?

You should not undertake work for your employer while you are furloughed.

Workers will remain employed while furloughed, and your employer could choose to fund the differences between this payment and your salary.

If your salary is reduced as a result of these changes, you may be eligible for support through the welfare system, including Universal Credit.