Coronavirus – Job Retention Scheme

We now have more details about the Coronavirus job retention scheme announced by the government. This is the scheme that will pay 80% of furloughed workers’ salaries and the details are here: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme 

In summary, if you have any employees on the scheme you can claim a grant from HMRC to cover wages for a furloughed employee, equal to the lower of 80% of an employee’s regular salary or £2,500 per month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on paying those wages.

All employers remain liable for associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on behalf of their furloughed employees.

You need to pay staff as usual and will then reclaim these costs from the government by entering the furloughed workers details onto a new portal (to be built). You will then receive the refund via BACS into your bank account.

If an employee is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme.

If you are a company director, you are eligible for this scheme but one of the criteria is that you cannot undertake work for or on behalf of your company. This includes providing services or generating revenue.  You can however still fulfil your statutory duties as a director such as ensuring accounts are filed etc.

If you have any questions about this, or any other help available, please get in touch