Coronavirus Job Retention Scheme
Coronavirus Job Retention Scheme will cover 80% of regular salary of an employee with cap limit to £2,500 a month. Employers must apply for this scheme with HMRC and Coronavirus Job Retention Scheme will be backdated to 1st March to cover 3 months period.
Today (20 March 2020) Chancellor has also confirmed that there is NO limit on how much this scheme might cost and will be financed through National Debt.
The Chancellor Sunak Rishi has pledges to do ”whatever it takes” to keep the businesses running and offered support package as much as £350bn.
What is the eligibility criteria?
All businesses in UK are eligible.
How the scheme can be accessed:
To use the scheme you’d need to do the following:
- Affected employee status needs to be changed as ‘furloughed worker,’ and inform your employee of this change. However changing this employment status may be subject to further negotiation but remains subject to existing employment law.
- HMRC will set out further information how to report the details of such employee on their new online portal. (Watch this space)
HMRC is working to set up a system immediately for reimbursement and it is expected to start as early as by April 2020.
If your business required help with short term cash flow, it may be eligible for a Coronavirus Business Interruption Loan.
Please get in touch here with our expert staff for further information.