What records on furlough claims should we keep?
As an employer, it is important that you keep the following records for six years:
- any agreement with the employee
- the amount claimed for each employee
- the claim period for each employee
- the claim reference number
- calculations (in case HMRC need more information about the claim)
- usual hours worked, including any calculations for employees you furloughed
- actual hours worked for flexibly furloughed employees.
There has been some inconsistency in the government guidance relating to this, on whether records should be kept for five or six years – this will be clearer in time.
I don’t have a furlough agreement in place, what should it include, and should I have one?
Yes, you should have a record of a furlough agreement between employer and employee. It is best practice to have this in writing and it should include the date that furlough starts, how much the employee will be paid while on the scheme, when this will be reviewed and also it is useful to have information regarding how contact will be maintained throughout the period of furlough. If you keep in touch with your employees while they are on furlough, the transition back to work will be smoother and easier to manage.