CORONAVIRUS JOB RETENTION SCHEME (CJRS)
Under the CJRS all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.
Every UK business is eligible for this scheme, regardless of sector or size, or however, your business is set up ie whether you are a limited company, sole trader or charity etc.
To access the scheme affected employees will have to be designated as ‘furloughed workers’ and the employees will need to be notified of this change. This is a change to the employment contract and may be subject to negotiation. Employment Law advice should be taken where possible.
Furloughed is a term which most of us are unfamiliar with and has no meaning in employment law terms. Effectively it is the term being used by the government for a laid-off worker. It is our understanding that a furloughed worker will not be able to work at all for their employer during the period that a claim is made for. Therefore be wary of short-term or reduced hours arrangements.
An online portal will be developed to allow information to be submitted to HMRC about the employees who have been furloughed and their earnings. The full details of what information is required has not been set out yet.
HMRC will reimburse 80% of furloughed workers wage costs up to a cap of £2,500 per month.
The system for reimbursement is being worked on urgently by HMRC as currently there is no existing system available to enable payments to employers. It is likely that this will take several weeks and it might be early May before the payments are actually available.
We await the release of further details on the CJRS and will update the information as we have it.
If your business needs short term cash flow support you may be eligible for a Coronavirus Business Interruption Loan (CBIL)
If you believe that you may be eligible for the CJRS and require our assistance with making an application then please contact us by email on email@example.com