Coronavirus job retention scheme opened for applications
A major new strand of the Government’s support for businesses was launched this week with the opening of the furlough scheme on Monday.
The scheme, part of the package of support announced by the Government, allows employers to claim cash grants worth up to 80% of a furloughed employee’s wages plus any employer National Insurance and pension contributions up to a cap of £2,500 a month.
Applications have to be submitted through a new HMRC online portal – with correct claims paid by BACS within six working days.
Employers who have put staff on furlough because of coronavirus should check, before submitting a claim, that both they and their furloughed employees can use the scheme. They should also work out how much they can claim.
There is a list of the information needed to make a claim and details of how to claim on a new .Gov.uk site. Employers need to be registered for PAYE online and will need to have their Government Gateway user ID and password.
More information can be found here on guidance on the job retention scheme, claiming for wage costs, working out how much you can claim, what you'll need, and how to claim.
Employers can furlough anyone they employ provided that they were on PAYE payroll on or before 19th March and HMRC has been notified of payment via the RTI system. Employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts. Foreign nationals are eligible to be furloughed.
As well as employees, the grant can also be claimed for any of the following groups, if they are paid via PAYE: office holders (including company directors), salaried members of Limited Liability Partnerships (LLPs), agency workers (including those employed by umbrella companies), and limb (b) workers.
The scheme has been extended until the end of June, following the extension of the lockdown measures.