Coronavirus Job Retention Scheme
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 (HMRC will set out further details on the information required)
When to apply?
The online system will be set within weeks with the aim to be ready by the end of April.
If you need short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.