News
Conovirus Jpb Retention Scheme
26 - 03 - 2020
Guidance Note
The Coronavirus Job Retention Scheme
Please be aware that this note is based on the information published as at 23 March 2020 and is intended to provide guidance on how Foremans LLP believe at this juncture the scheme will be implemented. The information is based on Foremans LLP’s interpretation of the available information. You should not regard this as advice on how the scheme will operate as several factors have still to be announced.
1. A member of staff should be designated as a Furloughed Worker and notified of the change.
2. Any change in staff designation remains dependent on employment law.
3. A member of staff Furloughed must not work for the employer during the period of Furlough.
4. The Furlough period can be from 01 March 2020.
5. Initially the Furlough period will last 3 months but may be extended.
6. Employees must be on the business payroll as at 29 February 2020.
7. All UK businesses with a PAYE scheme are eligible for the scheme regardless of size.
8. The payment from the scheme is a grant not a loan.
9. The grant will be paid direct to the employer.
10. The maximum monthly wage is expected to be capped at £2,500.
11. The maximum grant per employee is expected to be the lower of:
• 80% of wages – the definition of wages has not yet been clarified
and
• £2,500 per month.
12. Whether the employer will be expected to top up the employees’ salary to the full amount usually paid seems to be dependent, at the moment, on employment law.
13. A new online IT system is currently being developed to process the payments. The development may take some time. In order to assist employers with cashflow issues businesses should consider applying to the Coronavirus Business Interruption Loan Scheme.
14. The employer will pay the employee through the payroll.
15. The employer will report the payments through the Real Time Information (RTI) system as normal.
16. The scheme will be administered for the Government by HMRC.
Further useful information can be found at:
https://www.businesssupport.gov.uk/coronavirus-job-retention-scheme
If you would like to discuss any of the issues noted above please contact us on:
01244 625 500 or 01978 364 000
contactus@foremansllp.com
Whilst all due care and attention has been taken in the preparation of these notes no liability can be accepted for any omission or item contained therein.
Foremans LLP 25 March 2020
