For full details on the job retention scheme visit the below link which details:
- Who can Claim
- Employees you can claim for
- What you will need to claim
- How to Submit a claim
Below is a summary of the scheme detail. The above link should be referred to for full details of the scheme. It is also advised to speak to your account and / or HR representative to see what is best for your business.
What is the Scheme? A temporary scheme, open to all UK employers that had created and started a PAYE payroll scheme on 28 February 2020. The scheme is open for at least 3 months from 1 March 2020. Under this scheme HMRC will pay a grant to support employers whose operations have been severely affected by Covid-19.
The scheme will cover 80% of furloughed employees’ wage costs (those forced/allowed of work), up to a cap of £2,500 per employee per month (plus associated employer national insurance contributions and minimum automatic enrolment employer pension contributions on that wage. Employers can use this scheme anytime during the 3-month period.
The retention grant is to help employers meet the wage costs of employees who are not working without having to make redundancies. This means workers can retain their job, even if their employer cannot afford to pay them, and be paid at least 80% of their salary. The employer is not required to top this grant up.
Who can claim? All UK employers, irrespective of business size or sector who have employees. You must have created and started a PAYE on or before 28 February 2020 and have a UK bank account. This includes:
- Recruitment agencies (agency workers paid through PAYE
- Public Authorities.
Employees you can claim for: Employees who have been on PAYE payroll on 28 February 2020 and can be on any type of contract, including:
- Full Time employees
- Part time employees
- Employees on agency contracts who are not working
- Employees on flexible or zero hours contracts
- Employees who were made redundant since 28th February 2020, if they are rehired by their employer
You do not need to place all staff on furlough. However, when on furlough, an employee cannot undertake work for or on behalf of the organisation. An employee’s wage will be subject to usual income tax and other deductions.
If an employee is working but on reduced hours, or reduced pay, they will not be eligible for this scheme. To be eligible for the subsidy employers should write to their employee confirming that they have been furloughed and keep a record of this communication.
Employees hired after 28th February 2020 cannot be furloughed or claimed for in accordance with this scheme
Employees on unpaid leave cannot be furloughed, unless they were placed on unpaid leave after 28 February 2020
Employees on sick leave or self-isolating should get statutory sick pay but can be furloughed after this.
What you can claim: At a minimum employers must pay their employee the lower of 80% of their regular wage or £2500 per month. An employer can choose to top up an employee’s salary beyond this.
Further guidance will be issued on calculation of claims for employer national insurance contributions and minimum automatic enrolment employer pension contributions.
Claim: To claim you will need to calculate the mount you are claiming. You can only submit one claim at least every 3-weeks, which is the minimum length an employee can be furloughed. Claims can be back dated to 01 March if applicable.
You will also need:
- Your ePAYE reference number
- The number of employees being furloughed
- The claim period (start and end date)
- Amount claimed
- Your bank accounts details
- Your contact details
The online service for claiming is not available yet. It is expected to be available by end of April 2020.
Further Information Link:https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme