Advanced Accountancy are commited to communicating with you at this worrying time. We understand that the information on the Gov website is overwhelming and complicated and it’s hard to sit down and decipher pages of new information with so much chaos going on around us.
Well, now you don’t have to.
Welcome to your daily ‘under the spotlight’ blog which will simplyfy and breakdown each Government scheme that has been put into place over the last few days.
Coronavirus Job Retention Scheme
At this uncertain time where your business income is looking patchy (to put it kindly) and no one knows when things are likely to start turning around, the last thing you need to worry about is paying your employees. If you employee just one person, or have a workforce of thousands, covering wages can often be a financial concern at the best of times. Its safe to say COVID-19 has far from helped (unless you work in a toilet paper factory I suppose….)
Needless to say no employer wants to let down loyal employees when they could well be facing financial difficulties of their own. You know your employees all have mortgages, rent and bills to pay and the idea of laying everyone off at such a time is really difficult to contemplate.
Thankfully help is at hand.
Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying up to 80% of their employees’ salary for those employees that would otherwise have been laid off during this crisis. This protects your staff force, ensures that they will be there when we emerge from the crisis, and takes a huge financial burden off your struggling business. No difficult decisions need to be made! So, we know there is an answer, but I guess you still have questions….Fire away!
Am I eligiable?
Yes, thankfully all UK businesses are eligable for this scheme.
How do I access this scheme?
You will need to:
designate affected employees as ‘furloughed workers,’ and notify your employees of this change. By changing the status of employees they remain subject to existing employment law and, depending on the employment contract, this may be subject to negotiation
You then 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 very soon)
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, so bear with them on this one. We are all working hard to accomdate an unexpected crisis!
As an employer you are able to top up the remaining 20% if you are financially able to do so, and if you’re simply not in the position to do that you can rest easy knowing that the vast majority of the money is covered providing a safety net to your business and workforce.
This sounds time consuming. Are there any other options?
At Advanced Accountancy our qualified and experienced payroll team are in an excellent position to facilitate these complex changes ensuring the minimum disruption possible to your employees and giving you the time and space to focus on keeping yourself and your community as safe as possible.
If you believe that the above scheme would be of benefit to yourself and your company contact us today on 01384 271858 and rest easy knowing the wages are taking care of themselves.