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Coronavirus Job Retention Scheme Information
Find out more about the government’s scheme to cover 80% of your employees’ wages
This advice was first published on 21 April 2020; the government has now extended the scheme – details here.
Professionals in the Houzz community are doing their best to run their businesses during this time. To help you navigate this environment, we want to summarise some of the benefits and relief available from the UK government for small- and medium-sized businesses.
Professionals in the Houzz community are doing their best to run their businesses during this time. To help you navigate this environment, we want to summarise some of the benefits and relief available from the UK government for small- and medium-sized businesses.
You’ve probably already heard about the Coronavirus Business Interruption Loan Scheme, which was expanded on 19 April 2020 from small- and medium-sized businesses to large businesses. The UK government is also aiming to launch a Self-employment Income Support Scheme by mid-May 2020, and we will provide more details about this at a later date.
Today, we’ll focus on the Coronavirus Job Retention Scheme, which started on 20 April 2020; this is not available for the self-employed.
If your business has been affected by coronavirus (COVID-19), you can apply for a grant to cover part of the wages of employees who agree to be furloughed. The grant covers 80% of the usual monthly wage costs for the furloughed employees, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on the subsidised furlough pay. You may choose to pay furloughed employees up to the amount of the grant only or more, but not less.
Today, we’ll focus on the Coronavirus Job Retention Scheme, which started on 20 April 2020; this is not available for the self-employed.
If your business has been affected by coronavirus (COVID-19), you can apply for a grant to cover part of the wages of employees who agree to be furloughed. The grant covers 80% of the usual monthly wage costs for the furloughed employees, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on the subsidised furlough pay. You may choose to pay furloughed employees up to the amount of the grant only or more, but not less.
Eligibility
To be eligible for the grant, the furloughed employees must have been on your payroll on or before 19 March 2020. Currently, this scheme may be used for subsidising wages from 1 March 2020 through to 30 June 2020, but it may be extended by the government.
Conditions
Furloughed employees may not provide services or make money for your business or other linked or associated businesses. However, you do not need to place all your employees on furlough. Employees can be furloughed one or more times, but each separate instance must be for a minimum period of three consecutive weeks in order to be eligible for subsidies. Employees who do not agree to go on furlough may be subject to redundancy or termination of employment in line with normal redundancy rules and protections.
Any entity or individual with a UK payroll can apply. The specific criteria are that you must have created and started a PAYE payroll scheme on or before 19 March 2020, enrolled for PAYE online, and have a UK bank account.
To be eligible for the grant, the furloughed employees must have been on your payroll on or before 19 March 2020. Currently, this scheme may be used for subsidising wages from 1 March 2020 through to 30 June 2020, but it may be extended by the government.
Conditions
Furloughed employees may not provide services or make money for your business or other linked or associated businesses. However, you do not need to place all your employees on furlough. Employees can be furloughed one or more times, but each separate instance must be for a minimum period of three consecutive weeks in order to be eligible for subsidies. Employees who do not agree to go on furlough may be subject to redundancy or termination of employment in line with normal redundancy rules and protections.
Any entity or individual with a UK payroll can apply. The specific criteria are that you must have created and started a PAYE payroll scheme on or before 19 March 2020, enrolled for PAYE online, and have a UK bank account.
Retention opportunities
In addition, grants under this furlough are available as an alternative to prior terminations, unpaid leave, and sick leave, as well as being used for employees who are self-isolating, shielding or have care responsibilities resulting from COVID-19:
In addition, grants under this furlough are available as an alternative to prior terminations, unpaid leave, and sick leave, as well as being used for employees who are self-isolating, shielding or have care responsibilities resulting from COVID-19:
- Prior terminations: Employees who were made redundant or stopped working for you after 28 February 2020 but are subsequently re-employed and furloughed are also eligible, provided they do not have a new employer for which they are furloughed.
- Unpaid leave: If you have an employee who started unpaid leave after 28 February 2020, you can put them on furlough instead. If an employee went on unpaid leave on or before 28 February, however, you cannot furlough them until the date on which it was agreed they would return from unpaid leave.
- Sick leave: Subject to the minimum three-week furlough period, you may furlough employees who are on sick leave or put furloughed employees on sick leave. However, for the same period, the employee cannot receive Statutory Sick Pay and be claimed by the employer under this scheme.
- Self-isolating, shielding, or caring for others due to COVID-19: Individuals who cannot work because they are self-isolating, shielding, or caring for others due to COVID-19 are also eligible to be claimed by the employer under this scheme if furloughed.
Note that the information we have provided is not legal advice and may change quickly given the dynamic environment. For questions specific to your business, it’s advisable to consult with an accountant or solicitor. For tips on managing your business during COVID-19, check out other webinars and content from our Houzz Pro Resilience Initiative here.
Please email ukeditor@houzz.com if there are additional topics on which you’d like more information.
Please email ukeditor@houzz.com if there are additional topics on which you’d like more information.
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