On Friday 20 March 2020, the Chancellor announced a package of measures to help businesses through these times of economic uncertainty, including the Coronavirus Job Retention Scheme which has been set up to allow “all UK employers… to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.”
In very brief terms, the steps are:
the employer needs to start by determining which of their employees are to be subject to furlough leave, communicate with the relevant employees and, where possible, obtain their agreement to be furloughed. Note that employment law issues need to be considered here, then the details of furloughed employees will be provided to HMRC through a new online portal that they are developing – but this is not yet available.To read a further explanation about this scheme, visit: https://www.dtegroup.com/news/blog/coronavirus-job-retention-scheme-furloughed-employees
Claim for wage costs through the Coronavirus Job Retention Scheme
HMRC have published updated detailed guidance on the Job Retention Scheme (also known as ‘furloughing’).
The guidance covers:
Employer eligibility Employee eligibility How much can be claimed? Particular employee types Employer National Insurance and Pension contributions. The claim process The tax treatment of amounts paid and claimed Can owner-manager/Directors use it?To read the full guidance, please visit https://www.dtegroup.com/news/blog/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme.