Job Retention Scheme

Government Support for your Business
Updated 8th June 2020

This scheme has been set up to support business that cannot maintain normal operations due to Covid-19

What do you need to know…

  • Payments are processed within 5 working days
  • Claim up to 80% of furloughed employees gross wages
  • Furlough claim is capped at £2,500 per month per employee
  • Claims can be submitted before the pay date
  • Furlough payments are taxable but not repayable
  • Directors can be furloughed (including sole directors)
  • The scheme will stay in this current form until the end of July 2020
  • The scheme will close on 31 October 2020

On 29 May 2020, the Treasury announced the following…

  • June: No changes to the scheme for furlough payments made in June
  • June: The furlough will scheme will close to any new entrants after 10th June 2020
  • July: Employers will be given the flexibility to bring furloughed staff back on a part time basis
  • July: Employers will only pay for the hours their employees are working, whilst 80% of wages for the remaining hours will be covered by the the furlough grant

 

  • August:  Employers will be required to pay NIC and minimum pension costs for furloughed employees. With 80% of wages still being paid by the government up to the  £2,500 cap

 

  • September: The government will pay 70% of wages up to a cap of £2,187.50
  • October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500

Eligibility prior to 1st July 2020…

  • Furloughed employees cannot undertake any work for the business, i.e. business generating work
  • Any employees working reduced hours or reduced pay as a result of Covid-19 are not eligible
  • Employees can however undertake training
  • Employees must be furloughed for a minimum of 3 consecutive weeks
  • Sole directors are only allowed to conduct statutory duties as a director of the business, i.e. paying suppliers, running payroll

How can AOR can help you…

  1. We can help you work out if you are eligible
  2. Work out how much you can claim
  3. Support the process for making these claims

As ever, Adams O’Rourke are here if you need any further assistance regarding Covid-19 business support. Click here to get in touch with us.

Take care everyone!

Further Information is available on the HMRC website

 

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