Coronavirus Job Retention Scheme - Getting Prepared.by Computare on 04/13/20
We have now compiled much of the data required to make claims for employers with furloughed employees. However, we will need details of your client bank account including Bank Name, Sorting Code, and Account Number.
It is vitally important that the concept of furloughing employees is fully understood in order to prevent fraudulent claims. The scheme was set up to save jobs by enabling employers to continue paying employees when laid off. In normal circumstances employees would be made redundant if there was not enough work to continue employing them. The Job Retention Scheme is an alternative to redundancy and is aimed at keeping employees on the payroll in the hope that when things return to normal everyone can go back to work. This is not to say that there may not be some redundancies in the future.
The most important factor to ensure that your claim is valid is to ensure that your employee/s are not working. The only exception to this is somebody operating as a director; they can continue to undertake statutory duties like filing accounts and confirmation statements.
The Job Retention Scheme will pay for 80% of an employees normal salary up to £2500 per calendar month. The employee must have been on the payroll as at 28th February 2020. The scheme will also cover associated employers pension (up to the standard 3%) and National Insurance costs.
The basis period for regular employees is 80% of the February 2020 payment. For employees working irregular hours it is 80% of the same period last year, or the average paid over the last year, whichever is the higher.
You can continue to pay your employees their normal pay if you can afford to. This will not affect the 80% Job Retention Scheme claim.
The minimum claim is for three consecutive weeks and the maximum is three months (unless the scheme is extended). The scheme is currently running from 1st March to 31st May 2020.
We will give priority to our existing clients and process claims at a rate that covers our time. We do not want to make money from administrating claims but we do need to cover costs. If you are an existing client and wish to make a claim then please let us know via email on firstname.lastname@example.org.
We are happy to assist new clients but will need to go through the client authorisation process and be in possession of signed terms of engagement before acting.
Further information from HMRC