How To Access the Coronavirus Job Retention Scheme?

How To Access the Coronavirus Job Retention Scheme? 

The announcement of the Coronavirus Job Retention Scheme meant that business owners up and down the country let out a massive sigh of relief following weeks of uncertainty around COVID-19. It is the kind of support that businesses, as well as people across the country, need in a time like this and it is hoped thousands of jobs will be saved thanks to the scheme.

It’s likely you have already heard about the scheme, but if you are unsure about what it means for your business, or how you can access it, read on below.

What Is the Coronavirus Job Retention Scheme? 

This temporary scheme was introduced by the government in March and it is open to all UK employers.

Under the scheme, your business can choose to furlough some or even all its staff and the government will cover 80% of each employees’ wages, up to a maximum of £2,500 per employee – plus any employer National Insurance and pension contributions.

The scheme has been extended until the end of April and businesses will not be expected to pay this money back.

You can only claim for employees who were employed on the 30^th of October 2020 and your business must have made a PAYE RTI submission to HMRC between the period of the 20^th of march 2020 and the 30^th of October 2020.

How Do I Make A Claim?

– Choose which employees you want to furlough.

– Have conversations with the employees you wish to put on the scheme, as they must agree to be furloughed.

– Decide whether you are going to give them 80% of their wages (all funded by the government) or whether your business intends to top up the final 20%. Notify the employee how much of the usual salary they will receive – you can use the this Coronavirus Job Retention Scheme Calculator to work out 80% of your employees’ wages.

– Each furloughed employee must immediately stop work. Any employee put on the scheme will not be able to conduct any work whatsoever on behalf of your company for the duration of their furlough leave.

– To make your claim, you will need the Government Gateaway user ID and password you were given when you registered for PAYE online. Once you have that information to hand, click here to make your claim.

– Submitting your claim must be done in one complete session. You will not be able to save any progress and return at a later point. Sessions will automatically time out after 15 minutes of inactivity.

If you do unfortunately have to make an employee redundant, you should base statutory redundancy and statutory notice pay on their normal wage rather than the reduced furlough wage.

For additional insight on the Coronavirus Job Retention Scheme, read our blog on What Your Business Needs To Know About Furlough. If you require more SME advice regarding the Coronavirus situation, take a look at the additional resources on our Coronavirus Hub.