COVID-19: Measures for UK businesses

The Government announced on Friday 20th March they will help pay wages under a Job Retention Scheme, for those who are unable to work during the current crisis. 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.  All UK businesses are eligible.

How to access the scheme

You will need to:

  • designate affected employees as ‘furloughed workers,’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.
  • submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

At this stage we don’t have the details of how the reimbursement will happen in practice.  However it is unlikely that employers will be able to put in place changes to contracts of employment as at 1 MARCH 2020.  It is therefore very likely HMRC will look at the RTI submissions in February 2020 to compare possible reimbursement claims.

Other Key announcements:

Chancellor Rishi Sunak has set out a package of measures to support public services, people and businesses through the period of disruption caused by COVID-19.

Other key measures announced to support businesses including the latest measures announced on Friday 20 March 2020:

  • The Coronavirus Business Interruption Loan Scheme, which was announced on Tuesday, has now had the interest free period extended from six months to 12 months.deferring VAT and Income Tax payments.
  • A Statutory Sick Pay relief package for SMEs.
  • A 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England.
  • Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief.
  • Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000.
  • The HMRC Time To Pay Scheme.
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The information contained in this website is for general information purposes only. The information is provided by ADM Accountancy Services Ltd and while we endeavour to keep the information up to date and correct...
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