This post has been updated to 12:00 27/03/20
This post is a summary of the Coronavirus Job Retention Scheme( CJRS) – the detail can be found here.
Details on a ‘ furloughed’ employee can be found in our blog post.
Please note that HMRC have not yet issued the actual detail on how to claim below through their new Portal – this is expected to be ready by late April.
Any UK organisation with employees (including businesses, charities, agency workers paid through PAYE).
The Employer’s PAYE payroll scheme must be started before 28th Feb 2020 and have a UK bank account.
The Scheme starts from the 1st March for 3 months
It is designed to support Employers who have had to stop work due to Coronavirus and have ‘furloughed’ Employees after the 1st March
An Employee cannot work during this ‘ furloughed’ period , even on reduced hours.
They can be:
– Employees hired after 28 February 2020 cannot be furloughed or claimed for.
– Employers should write to their employee confirming that they have been furloughed and keep a record of this communication.
– Employees on unpaid leave cannot be furloughed, unless they were placed on unpaid leave after 28 February.
– Employees on sick leave or self-isolating should get SSP and can be furloughed after this.
Employers will receive a grant from HMRC to cover the lower of 80% of an employee’s regular wage or £2,500 per month even if, based on their usual working hours, this would be below National Living Wage/National Minimum Wage.
They will also get the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. Fees, commission and bonuses should not be included.
If the employee:
While on furlough, the employee’s wage will be subject to usual income tax and other deductions.
Employees will also pay automatic enrolment contributions on qualifying earnings, unless they have chosen to opt-out or to cease saving into a workplace pension scheme.
Please send in the above as per your usual manner and instruct us to complete the claim.
If you prepare your own Payroll, if you go to this link you will see all the details that you require for the claim.
As always, if you require any help, please let us know.