COVID 19 update - Job Retention Scheme
Guidance on Government support for business during the COVID 19 crisis is available online.
Updated guidance on Government support for business during the COVID 19 crisis is available online.
The support includes the Coronavirus Job Retention Scheme, which is intended to provide support to continue paying part of the salary of employees that would otherwise have been laid off during this crisis.
Businesses wanting to use the scheme 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
- 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 per cent 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.
Further information on the Coronavirus Job Retention Scheme is available on the UK Government website.
In addition, the Institute of Accountants in England and Wales (ICAEW) have published some guidance, 'The Coronavirus Job Retention Scheme: furlough guidance' which is available on the ICAEW website. This includes a link to 'furlough guidance' (pdf format).