On Friday 29th May, the Chancellor provided an update on the Coronavirus Job Retention Scheme which can be read, in full, here: https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps.
- The Job Retention Scheme (or furlough scheme) is to be gradually tapered off, with businesses paying 20% of the wages of furloughed staff by October 2020.
- The Government will continue to pay 80% of wages, National Insurance and Pension contributions for June and July. The furlough scheme will close to new entrants by 30 June.
- From August 2020, firms will pay employer National Insurance and Pension contributions for staff they continue to keep on furlough. The Government will still pay 80% of furloughed staff wages in August, reduced to 70% in September and 60% in October.
- Businesses can bring back furloughed staff part time from 1st July.
Remember, if you’re a local business with concerns about the scheme or an employee who is struggling to be furloughed, you can contact me on firstname.lastname@example.org and I’ll do my best to help.
On Monday 20th April, the Coronavirus Job Retention Scheme went live, allowing employers to “furlough” staff temporarily and claim up to 80% of their salaries. I’ve expressed my concerns that far too many of my Constituents are falling through the cracks of the support offered by the scheme, watch my short video below to find out more.
The following information has been passed on to me by HMRC about the Job Retention Scheme which may be useful for employers.
If you have already made a claim
Payments for claims made on Monday 20th April should be in employers’ bank accounts by Tuesday 28th April. It takes six working days from when you claimed to receive the money. HMRC have said not to call them to chase payment unless six working days have passed as they won’t be able to update you on the status of your claim before the six working days have ended.
You don’t need to do anything to receive payment. It will automatically be sent to the bank account you nominated in your claim. You should retain all records and calculations for your claims in case HMRC need to contact you in future.
If you haven’t yet made a claim
Employers can still claim online for a grant for 80% of their furloughed employees’ salaries, up to a maximum of £2,500 per employee, per month. You will receive the funds six working days after you claim, provided your claim matches records that HMRC hold for your PAYE scheme.
Employers should read all the available guidance before applying. To find the latest guidance go to GOV.UK and search for ‘Coronavirus Job Retention Scheme’.
Employers should continue to keep their furloughed employees informed and ask them not to contact HMRC directly as they will not be able to provide employees with any information.
Everyone should stay vigilant about scams, which may mimic government messages such as ‘Stay at home’ and ‘Stay home, stay safe’, as a way of appearing authentic and unthreatening. Don’t give out private information or reply to text messages, and don’t download attachments or click on links in texts or emails you weren’t expecting. People can forward suspicious emails claiming to be from HMRC to email@example.com and texts to 60599.