***UPDATE (20th April)
The Job Retention Scheme is up and running now - click HERE to visit the Government website
***UPDATE*** (15th April)
- eligibility cut-off date for Coronavirus Job Retention Scheme extended to 19 March 2020
- the change will mean thousands more workers can be furloughed
- scheme expected to be fully operational next week
Under the scheme announced by Chancellor Rishi Sunak last month, employers can claim a grant covering 80% of the wages for a furloughed employee, subject to a cap of £2,500 a month.
To qualify and to protect against fraudulent claims, individuals originally had to be employed on February 28 2020.
But following a review of the delivery system and to ensure the scheme helps as many people as possible, new guidance published today has confirmed the eligibility date has been extended to March 19 2020– the day before the scheme was announced.
Employers can claim for furloughed employees that were employed and on their PAYE payroll on or before 19 March 2020. This means that the employee must have been notified to HMRC through an RTI submission notifying payment in respect of that employee on or before 19 March 2020.
This change makes the scheme more generous while keeping the substantial fraud risks under control and is expected to benefit over 200,000 employees.
For the first time in our history, the British government is going to step in and help pay people’s wages – a scheme which is one of the most generous of any in the world – paying grants to support as many jobs as necessary. We will place no limit on these grants. Any employer in the country – large, small, charitable or for profit – who promises to retain their staff, can apply for a grant to cover most of the wages of people who are not working but are furloughed and kept on payroll, rather than being laid off. Government grants will cover 80 per cent of the salary of retained workers up to a total of £2,500 a month – above the median income. The cost of wages will be backdated to 1st March and will be open initially for at least three months – and we will extend the scheme for longer if necessary.
I have asked about the situation where someone has left their previous job with employer A, to start with employer B after the 28th Feb, only dto be laid off by B in March due to the economic impact of Coronavirus, meaning they would not qualify for furlough support through the Job Retention Scheme, where you must have been on the payroll prior to 1st March to be eligible. I can confirm that if employer A is willing to take the person concerned back on for the purposes of furloughing for the short term, that would be acceptable.
Deferring the next three months of VAT tax, a direct injection of over £30 billion of cash to employers, equivalent to 1.5 per cent of GDP. That means no business will pay any VAT from now until the end of June; and they will have until the end of the financial year to repay those bills.
The Coronavirus Business Interruption Loan Scheme will now be interest free for twelve months, an extension from the initial announcement of six months. We have already introduced and announced an extension to the Business Interruption Loan Scheme, which is for small and medium-sized businesses. On Tuesday, the Chancellor expanded the amount that can be borrowed from £1.2 million to £5 million, and we are now extending the time frame of no interest on these loans from six months to twelve months.
Please see the attachment below for the letter from the Chancellor
|Chancellor Letter||107.44 KB|