All UK employers with a PAYE scheme that was created and started on or before 28 February 2020, will be able to access support through the Coronavirus Job Retention Scheme to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.
This applies to employees who have been asked to stop working, but who are being kept on the payroll, otherwise described as ‘furloughed workers’.
Under the Coronavirus Job Retention Scheme, HMRC will pay employers a grant worth 80% of an employee’s usual wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. This is to safeguard workers from being made redundant. The Coronavirus Job Retention Scheme will cover the cost of wages backdated to March 1st if applicable and is initially open for 3 months, but will be extended if necessary.
If you have any immediate or urgent issues get in touch with us to discuss your options in these tough and uncertain times.