Coronavirus Q and A: If I'm furloughed, what happens?
QUESTION FROM AN IRISH NEWS READER:
"With the government putting an 80% wage relief in place for employers, which sees them pay 80% of an employee's wage up to £2500, how does this effect the employee in terms of tax, change of earnings, credit rating, mortgage payments?"
The employer will furlough the worker (only if they have to temporarily lay them off due to there being no work for them to do) and reduce their wages by 20% which is processed through payroll.
The post tax position of each person needs to be compared before and after the furloughing to determine individual differences.
Most employees are then asking banks for mortgage holidays which is not normally affecting credit scores but check first of all with the bank before asking for the holiday.
:: Paddy Harty ( firstname.lastname@example.org) is tax director at www.pkffpm.com
Do you have a question about how the coronavirus shutdown will affect you? Email journalist Claire Simpson on email@example.com or send her a Twitter message @ClaireMSimpson