Support for businesses through the Coronavirus Job Retention Scheme

Under the Coronavirus Job Retention Scheme, 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.

If you cannot maintain your current workforce because your operations have been severely affected by coronavirus (COVID-19), you can furlough or flexible furlough employees and apply for a grant that covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay.

This was originally a temporary scheme in place for 3 months starting from 1 March 2020 but you can still claim if you furloughed employee’s during the original period.

Who can claim?

You must have:

  • created and started a PAYE payroll scheme on or before 28 February 2020
  • enrolled for PAYE online – this can take up to 10 days
  • a UK bank account

Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities. HMRC have set-up an online portal which you can use to make the claims

We’ve summarised the main points, but as you can imagine there is far more detail to this scheme, which can be found here.

Claim back Statutory Sick Pay paid to employees due to coronavirus

The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the current rate of SSP that they pay to current or former employees for periods of sickness starting on or after 13 March 2020.

If you’re an employer who pays more than the current rate of SSP you can only claim the current rate amount.

The repayment will cover up to 2 weeks starting from the first day of sickness, if an employee is unable to work because they either:

  • have coronavirus
  • cannot work because they are self-isolating at home

Employees do not have to give you a doctor’s fit note for you to make a claim.

Who can use the scheme?

The scheme can be used by employers if they:

  • are claiming for an employee who’s eligible for sick pay due to coronavirus
  • had a PAYE payroll scheme that was created and started on or before 28 February 2020
  • had fewer than 250 employees on 28 February 2020

The scheme covers all types of employment contracts, including:

  • full-time employees
  • part-time employees
  • employees on agency contracts
  • employees on flexible or zero-hour contracts

Full details of the scheme can be found here.

If you want to discuss any of these in more detail, don’t hesitate to give us a call – 01273 758882