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Coronavirus Job Retention Scheme — UK-wide

All UK employers with a PAYE scheme will be able to access support to continue paying part of the salaries for their employees who would otherwise have been laid off during this crisis. This applies to furloughed workers (people who are kept on the payroll but have been asked to stop working) as well.

Eligibility criteria

All UK employers (including individuals who employ people) which operated a PAYE scheme on or before 19 March 2020, have enrolled for PAYE online, and have a UK bank account are eligible to participate. In order to claim on or after 1 July, an employer will also need to have previously furloughed the employee for whom they are claiming, for at least three consecutive weeks between 1 March and 30 June.

What it covers

Until the end of July, employers can claim the lower of 80 percent of a furloughed employee’s gross pay, or £2,500 per month plus employer NICs and the minimum employer auto-enrolment pension contribution (effectively a maximum of £2,804 per month per furloughed employee). Furloughed staff will continue to receive 80 percent of their wages (up to the £2,500 monthly cap) for the duration of the scheme. From 1 August, while the government will continue to pay 80 per cent of wages up to a cap of £2,500, employers will be required to pay employer NICs and pension contributions for the hours their furloughed staff do not work.

From 1 September, the government will pay 70 percent of wages, up to a cap of £2,187.50. Employers will need to pay 10 percent of wages to make up the total of 80 percent, up to the £2,500 cap. From 1 October, the government will pay 60 percent of wages, up to a cap of £1,875. Employers will need to pay 20 percent of wages to make up the total of 80 percent, up to the £2,500 cap.

Duration

The scheme started on 1 March and will end on 31 October. New entrants can register for this program until 30 June. From 1 July onwards, employers will only be able to furlough employees that they have previously furloughed for a full three week period between 1 March 2020 and 30 June.

Government resource

https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

Disclaimer:

The information provided here was sourced from the HMRC and it will be updated periodically but we request you to check the individual sites provided about for more information. Last updated 24th June 2020.

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