Job Retention Scheme is the new scheme that allows employers to claim a grant for 80% of employee wages.
The application system will launch on 20 April.
It has been announced by HMRC during a meeting of the Treasury Committee.
The first payments through the system will be made by 30 April.
As accountants, following the indications sent to us by HMRC, we are keen to contact our clients offering ourselves as vital support during this process, either directly, if authorised, or indirectly as agent.
Through the Job Retention Scheme, employers must furlough their staff by putting them on temporary leave for a minimum of three weeks. The government will then refund 80% of salaries up to a maximum of £2,500 a month.
The government has confirmed that limited company directors can use the scheme but the grants will be based on PAYE salaries rather than dividends.
More than nine million workers will be furloughed through the scheme with the cost to the taxpayer estimated at £30 – 40bn, according to the Resolution Foundation
Who can claim
last update 19 April
You must have:
- created and started a PAYE payroll scheme on or before 19 March 2020
- enrolled for PAYE online – this can take up to 10 days
- a UK bank account
Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.
If you are:
- Public Sector Organization
- Redundant employee
- Employee – working reduced hours
- Employee on unpaid leave
- Employee – self-isolating or on sick leave
- Employee became sick while furloughed
- Shielding Employee
- Employee with caring responsibilities
- Employee with more than a job
- Employee on a fixed term contract
- Office holder
- Salaried Member of a Limited Liability Partnership (LLPs)
- Agency Worker (including those employed by umbrella companies)
- Limb (b) Worker
- Contingent worker in the public sector
- Contractor with public sector engagements in scope of IR35 off-payroll working rules (IR35)
- Employee on a change in ownership
- Employee under training
- Employee on maternity leave, paternity leave or adoption or shared parental leave
Contact us and we will help you to check your eligibility and to apply.
The latest coronavirus support information
We are keeping you updated on the latest information on how to access the government’s corona virus business support here. You can also find advice and ask a question contacting us