In light of the many questions arising since the announcement of the Job Retention Scheme, the Government has released some additional guidance to provide clarity on how the scheme should work and who will qualify.
As announced, the job retention scheme will be operated via an online portal which HMRC is expecting to be available by the end of April 2020. This facility can be used to claim up to 80% of furloughed employee’s usual months wages, up to £2,500 per month. In addition to this, employer’s national insurance and statutory auto enrolment payments can also be claimed. All March 2020 salary payments should be made by the company as normal.
To qualify for the scheme, the company payroll scheme must have started on or before 28 February 2020 and the company must have a UK bank account. A claim can be backdated to 1 March 2020 but can only be made for furloughed employees who were employed on or before 28 February 2020. Whilst on furlough, the employee cannot undertake any work for the company.
All furloughed employees must have been notified in writing of their furlough status to be eligible for the subsidy.
For further clarity on the detail of the job retention scheme, please take a look at the Government guidance.
If you have any questions about the job retention scheme or other issues arising from the COVID-19 crisis, please do not hesitate to get in touch with the team at DRG Chartered Accountants.
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.
