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CORONAVIRUS JOB RETENTION SCHEME

26.03.20
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    Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month.

    HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers. If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.

    ELIGIBILITY

    All UK businesses are eligible.

    HOW TO ACCESS THE SCHEME

    How to access the scheme you will need to: Designate affected employees as ‘furloughed workers,’ and notify your employees of this change - changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.

    Submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required) If your business needs short term cash flow support, you may be eligible for a Business Interruption Loan.


    BUSINESSES WHO ARE PAYING SICK PAY TO THEIR EMPLOYEES

    Legislation has been brought forward to allow small and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows:

  • this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19
  • employers with fewer than 250 employees will be eligible - the size of an employer will be determined by the number of people they employed as of 28 February 2020
  • employers will be able to reclaim expenditure for any employee who has claimed SSP(according to the new eligibility criteria) as a result of COVID-19
  • employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note. If evidence is required by an employer, those with symptoms of coronavirus can get an isolation note from NHS 111 (online) and those who live with someone that has symptoms can get a note from the NHS website.
  • eligible period for the scheme will commence the day after the regulations on the extension of SSP to those staying at home comes into force
  • the government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible

    • ELIGIBILITY

    Your business is UK based.

    Your business employs fewer than 250 employees as of 28 February 2020

    HOW TO ACCESS THE SCHEME

    A rebate scheme is being developed. Further details will be provided in due course once the legislation has passed.

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