Coronavirus Job Retention Scheme
Under
the new Coronavirus Job Retention scheme, government grants will cover
80% of the salary of PAYE employees who would otherwise have been laid
off during this crisis.
The scheme, open to any employer in the country, will cover the cost of
wages backdated to 1 March 2020 and will be open before the end of
April. It will continue for at least three months, and can include
workers who were in employment on 28 February.
To claim under the scheme employers will need to:
- designate affected employees as ‘furloughed workers’, and notify 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; and
- 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.
While HMRC is working urgently to set up a system for reimbursement, we
understand existing systems are not set up to facilitate payments to
employers. Businesses that need short-term cash flow support, may
benefit from the VAT deferral announced last week (our e-mail update to
follow) and may also be eligible to apply for a Coronavirus Business Interruption Loan.
Once we have more information we will update you and will help clients wherever necessary to make a claim.