The government is to pay 80% of wages for employees who are unable to work due to the coronavirus pandemic, up to £2,500 a month, the chancellor has announced this evening.

The Chancellor Rishi Sunak has announced these "unprecedented" measures in an attempt to avoid redundancies.

‍

"The government is doing its best to stand behind you and I'm asking you to do your best to stand behind your workers."

This is a colossal intervention from the government- as the chancellor said, unprecedented in the UK.

It reflects how concerned the government is about the economic impact this crisis could have - and is having already.

‍

Hatherleigh have read through the detail this evening from the HMRC detailed guidance, and confirm the following key points:

·        Any PAYE employer in the country small or large, charitable or non-profit, will be eligible for the scheme.

·        Employers will be able to contact HMRC for a grant to cover most of the wages of people who are not working but are furloughed and kept on payroll rather than being laid off.

·        Government grants will cover 80 per cent of the salary of retained workers up to a total of£2,500 a month to people whose jobs are at risk.

·        The government expects the first job-retention grants to be payed before the end of April and the scheme is initially expected to operate for three months.

‍

How to access the scheme

‍

Businesses 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.

‍

If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.

‍