We know how hard it’s been firstly understanding the detail of the Coronavirus Job Retention Scheme (CJRS), and then working out how to manage the process. Especially when before all of this, most people had never even used the word ‘furlough’!
In case you have to make the difficult decision of furloughing members of your team, we’ve put together some resources to help.
What is the Coronavirus Job Retention Scheme?
On 20 March 2020, the Chancellor announced the CJRS. Through the scheme, the government commits to cover 80% of the wages of ‘furloughed workers,’ up to £2,500 per month.
It’s a temporary scheme open to all UK employers until the end of October. However, from August to October, the scheme will be geared around getting people back to work with employers footing some of the bill. No details were given as to how this will work yet.
The only way to make a claim is online and it was launched on GOV.UK on 20th April 2020. Due to the volume of expected enquiries, HMRC won’t offer any telephone support. If you are making a claim yourself, here’s how you work out what you can claim. From May onwards, you’ll be able to make claims up to 14 days ahead.
How does the £2,500 work?
For an employee who’s furloughed, receiving the maximum amount available from HMRC of £2,500, the cost to you as a business is £0 right now (although the £2,500 is classed as income and will affect your profit and therefore your corporation tax bill further down the line). This is how it’s broken down:
The net pay will be different for each of your team that you furlough depending on their own personal circumstances, so you will need to work out each team member separately. If you need a hand with this, please get in touch with us.
Free HR helpline for Wow clients
We realised that HR advice was needed on the Coronavirus Job Retention Scheme and furloughing staff. We’ve arranged for Wow clients to be able to call and get free advice on this and any other HR queries they have. We’ve emailed all Wow clients the details on how to access the helpline. Please let us know if you haven’t received the details.
How we can help any business with the Coronavirus Job Retention Scheme
- Calculate the amount to claim or work out how many staff you need to furlough
- Make a claim and enter the correct information into the portal
- Run your payroll for you through this period
- Help you ‘unfurlough’ a member of your team
- Introduce you to HR advisors/employment lawyers should you need to
If there’s anything else you need help with not listed above, please ask, and we’ll find a way.
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Please always remember
The resources contained in our Support Hub are intended to help you and your business and are no substitute for professional HR & legal advice. Each business is different and you should get professional advice relating to your specific circumstances. If you’d like to be put in touch with someone, please let us know.