HELP FOR BUSINESSES – PAYROLL / VAT / CASH GRANTS
A package of support has been put together to help businesses in the UK. Full details can be found at: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19
EMPLOYERS & EMPLOYEES
For employers, this is a difficult time as they face lay offs and redundancies. The Government wants to keep people in work and to that end, has set up a job retention scheme allowing 80% of salaries to be reimbursed and this will be back dated to 1 March 2020 for up to three months (longer if necessary).
All UK businesses are eligible.
- 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)
- HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month and is working urgently to set up a system for reimbursement.
Things to Note:
- Existing systems are not set up to facilitate payments to employers.
- Your employee will be kept on your payroll, rather than being laid off. To qualify for this scheme, employees should not undertake work for you while they are furloughed.
- This will allow you to claim a grant of up to 80% of an employee’s wage for all employment costs, up to a cap of £2,500 per month.
- Employees remain employed while furloughed.
- You can choose to fund the differences between this payment and the salary, but you do not have to.
- Any persons employed on a salary basis, regular basis, irregular hours or zero hours are all protected.
SELF EMPLOYED PERSONS
Any queries or concerns?
Please call us on +44 1639 490170 or use our contact form.