In a massive boost for employers and employees the government has announced direct funding for employers to retain their staff on the payroll the Coronavirus job retention scheme, and this includes bringing back people already laid off or made redundant.  The measures are as follows:

  • It is for any employer small or large and from all sectors
  • Employers will need to contact HMRC for a grant
  • This will cover upto 80% of the salary of employees upto a maximum of £2500pm, and employers can top up if they want to
  • It can be backdated to 1 March for anyone already laid off or affected
  • It will be in place for at least 3 months initially and will be extended for longer if necessary
  • No limit on amount of funding has been made
  • This also applies to directors on minimum salaries

This will mean that if there is a lock down and employees cannot work or are unable to due to the outbreak, employers will be able to retain the staff ready for when the “all clear” is given and the economy can get straight back on where it left off.  The wording implies employers will have to pay 20% of the bill for the 3 months, but that is much better than laying staff off then having to re-employ them or others in due course.

How to secure the funding and how it is processed for payroll will be clarified in due course, but the Coronavirus job retention scheme is a welcome boost for worried staff and their employers.  You should seek professional advice before taking any steps based on these contents. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Gravesend, Kent – Accountants who “speak your language”