Coronavirus Job Retention Scheme
24/03/2020

If you have been 'furloughed' then the new Coronavirus Job Retention Scheme may be able to help. If you are furloughed it essentially means that your employer has given you a temporary leave of absence or a type of sabbatical to help cope with the economic turmoil resulting from COVID-19. If you are on furlough, then you should be at home and not working. However, you remain technically employed.

The new scheme will see the government cover up to 80% of wage costs, up to a cap of £2,500 per month per employee. HMRC are working to set up a system for reimbursement and the first grants are expected to be paid in the coming weeks. The scheme will run for at least 3 months, backdated from 1 March 2020, but will be extended if necessary. The government has not placed any limit on the funds to be provided using this scheme, but the costs will run into the billions each month the scheme is operational.

The use of this scheme is designed to encourage employers to avoid making people redundant and to help avoid significant financial hardship for individuals who have unfortunately been furloughed.  Your employer could choose to fund the differences between this government payment and your salary but is under no obligation to do so.

If your salary is reduced as a result of these changes, you may also be eligible for further welfare support. It appears that these grants will only be available to PAYE workers. It was not clear how this will apply to gig workers or those on zero-hours contracts. There will also need to be proper safeguards to ensure that this scheme is not subject to abuse.


About Us

Established in 1991 based in Epsom Surrey, CWM use technology to its fullest extent enabling us to work with clients based anywhere, with maximum efficiency resulting in lower costs.

Accreditation

 icaew logo 

   

    

sage1   xero transparent

Contact Us

1a High Street
Epsom
Surrey
KT19 8DA
Phone: 01372 727333
Email: info@cwmaccountants.com

Newsletter Sign Up

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login