Chartered Certified Accountants
Chartered Tax Advisers
Registered Auditors

blog

The Coronavirus Job Retention Scheme

This is what the Government has to say.

Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.

Eligibility

All UK businesses are eligible.

How to access the scheme

You will need to:

  • designate affected employees as ‘furloughed workers,’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
  • submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

The Government’s guidance for employees suggests that it may not be necessary for the employer to actually pay the 20% of salary not covered by the Scheme in order to benefit from the 80% reimbursement. As always, you should carefully consider the employment law position before deciding not to pay any part of wages.

Our payroll department can assist you with the processing of your payroll. Please contact us if you have any queries.

Additional Help for Business

The Government’s full Covid 19 Support for Business guidance is here:

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

 

 

Crozier jones Newsletter
Subscribe to our newsletter to receive the latest industry and company news