24/03/2020 by Andrew Brealey - Brealey and Newbury Accountants 0 Comments
Updated 24 March 2020
The Government has stated that “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”
The GOV.UK website https://www.gov.uk/government/publications/guidanc... states:
(HMRC states that..) 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 states that..) 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.
If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan. Please be aware that we have not been provided with any additional information about how this scheme will work ( i.e. which employees will be eligible, how much employees should be paid, how business can claim these payments back in the future etc). We only have access to the same information as everybody else, as published on GOV.UK website https://www.gov.uk/government/publications/guidanc... . You should check that website frequently for updated information provided by the Government.