Coronavirus Job Retention Scheme

First posted: 2 APRIL 2020
The scheme allows employers to continue paying part of their employees' salaries who otherwise would lose their jobs during the crisis. This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’.
17 June 2020

Eligibility

All UK businesses with a PAYE scheme are eligible, including the public sector, Local Authorities and charities.

 

What does the scheme provide? 

  • HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. 
  • The scheme will cover the cost of wages backdated to March 1st and is initially open for 3 months, but will be extended if necessary.

 

How to apply? 

  • 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 (once it is live)

 

 

To use the scheme, the steps you’ll need to take are:

  1. Check if you can claim.

  2. Check which employees you can put on furlough

  3. Calculate 80% of your employees’ wages.

  4. Claim for your employees’ wages.

  5. Report a payment in PAYE Real Time Information.

 

Save and return option now added (update from May the 26th)

In response to feedback from customers using the service, we’ve added a 'save and return' option. This means that you can now return to a partially completed claim, rather than having to do it all in one go.

 

These steps should help keep the process as simple as possible:

  • read the guidance before you apply, to find this go to GOV‌.UK and search for 'Coronavirus Job Retention Scheme', there’s a step-by-step guide to applying and a calculator
  • check your employees are eligible, by looking at the guidance on GOV‌.UK
  • check your calculations each time you submit a claim, in case any details have changed
  • only submit one claim per pay period – you can’t submit another claim for overlapping periods; this means that in each claim you should include all furloughed employees paid during that period
  • if you have missing National Insurance numbers for employees, do try and find them so it doesn’t delay your claim; if an employee doesn’t have a National Insurance number yet, you should contact HMRC in order to complete your claim; go to GOV‌.UK and search for 'get help with the Coronavirus Job Retention Scheme' to find out how to contact us
  • double check all of the information in the claim before you submit it, including your bank details.

 

The future of the scheme (update from June the 12th)

  • The rules of the scheme are changing from 1 J‌ul‌y.
  • On 12 J‌un‌e, we’ll publish full guidance on all the scheme changes on GOV.UK – search for 'Coronavirus Job Retention Scheme' to find this – webinars offering more support on the changes will also be available to book online from 12 June – please do not call us for more information, as everything you need to know about the scheme changes will be published online on GOV‌.UK.
  • From 1 July, you’ll have the flexibility to bring previously furloughed employees back to work part time, you can decide the hours and shift patterns they work to suit the needs of your business – you’ll pay their wages for the time they’re in work and can apply for a scheme grant to cover any of their normal hours they are still furloughed for.
  • Also, for periods starting on or after the 1 J‌ul‌y, the maximum number of employees you can claim for in any period cannot be higher than the maximum number you have claimed for in a previous period. For example, if your highest single claim for periods up to 30 J‌un‌e was for 100 people, you can’t claim for more than this number in later periods.
  • From 1 Au‌gu‌st, you will need to contribute towards the wage costs of your furloughed employees until the scheme ends on 31 Oc‌to‌be‌r.

 

Find out more by checking the links below. 

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