The Coronavirus Job Retention Scheme has been extended for a further four months to help businesses through the coronavirus pandemic. Here, Andrew Diver, head of tax, looks at the new flexibility offered by the scheme.
In a much-needed boost to hundreds of businesses across the county, the Chancellor Rishi Sunak has announced that the government’s Coronavirus Job Retention Scheme will remain open until the end of October.
The scheme will continue to allow businesses to claim 80% of the wages for furloughed staff – up to £2,500 per month. And a new flexibility will be introduced from August to help get employees back into the workplace.
But, what does this mean? It is simple, furloughed workers will be able to return to work on a part-time basis with their employer being asked to pay a percentage towards the salaries of their furloughed staff.
The employer payments will substitute the contribution the government is currently making, and therefore, ensure that workers continue to receive 80% of their wage.
The scheme will continue in its current format until the end of July, with the changes coming in at the start of August.
The addition of part-time furloughing will provide many businesses with a much-needed boost to help them get back up to normal working capacity.
Further information and specific details about the implementation of the extension will be made available by the end of May.
Accessing the Coronavirus Job Retention Scheme
To make a claim, employers will need:
- a Government Gateway ID and password – if you don’t already have a gateway account, you can apply online
- be enrolled for PAYE online – if you aren’t registered yet, you can do so now, or by going to GOV.UK and searching for 'PAYE Online for employers'
- your bank account details
- the following information for each furloughed employee you will be claiming for:
if you have fewer than 100 furloughed staff – you will need to input information directly into the system for each employee
if you have 100 or more furloughed staff – you will need to upload a file with information for each employee; we will accept the following file types: .xls .xlsx .csv .ods.
- National Insurance number.
- Claim period and claim amount.
- PAYE/employee number (optional).
Accountancy practices which run payroll for clients can access the HMRC online portal, which has been open since April 20th, and file the claims for you.
If you require advice or assistance, please get in touch via firstname.lastname@example.org