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Corona grants covering up to 80% of salary

  • Member PM.Dip
  • Practice Licence
  • 27 posts
  • # 118459

At 5pm on Friday 20 March I heard this.

"In an unprecedented step for the British government, the chancellor, Rishi Sunak, said the state would pay grants covering up to 80% of the salary of workers if companies kept them on their payroll, rather than lay them off as the economy crashes. The extraordinary payments will be worth up to a maximum of £2,500 per month, just above the median income".

I was immediately contacted by a client who has a crisis meeting with his employees on Monday morning to tell them they are being made redundant. He runs a small tour company mainly for the retired and elderly and his business has vanished virtually overnight.

My client needs to know before Monday morning if this scheme will save his business but can I find any information? No.

HMRC's website is silent on the subject. (Maybe they only found at 5pm on Friday too!)

So my question is - has anyone heard how this scheme will operate and who qualifies? 

These are desperate times. My client is desperate and I am desperate to help him.

Thanks all - keep safe

 

Peter R



Edited at 21 Mar 2020 05:58 PM GMT

  • Fellow
  • Practice Licence
  • 81 posts
  • # 118460

These two links may help.  

I still have loads of questions on qualification critera, Employee NI, pension contributions, what if staff were employed in March will they qualify.... to name but a few but hopefully the answers will come quick.  

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees

The employee link give more details to explain the furloughed position.

I hoep this helps

Jane

  • Member PM.Dip
  • Practice Licence
  • 2 posts
  • # 118463

https://www.accountancydaily.co/government-pay-80-salary-furloughed-workers


Hope this sheds some light on things





  • Member PM.Dip
  • Practice Licence
  • 27 posts
  • # 118467

Thanks guys really helpful links. I see ICB has a dedicated Corona virus page now and HMRC have an email alert service so any updates and announcements can be picked up quickly.

Peter R 

  • Companion Fellow PM.Dip
  • Practice Licence
  • 42 posts
  • # 118468

Good spot Jane! There is indeed a tiny bit more information on the government's Guidance for Employees page to say that the employer can choose to top up the 20% difference in wage but doesn't have to.

We are keeping our dedicated COVID-19 hub updated as best we can and are looking forward to more information about how the Job Retention Scheme will actually work. As you say, I'm sure HMRC is looking forward to this information too!

We are also hoping there will be an announcement of a better package for the self employed later today too.

These are new and challenging times. As a general note, if you can't find tthe answers to your questions on gov.uk or our COVID-19 hub, you can be pretty certain there is no answer as yet! All you can do is reassure clients that you will get them the information as soon as it's available.

Did you see we ran a live virtual meeting with Garry Carter and Jacquie Mount yesterday. The recording will shortly be added to the hub along with answers to all teh questions raised during the meeting. Please look out for regular emails and virtual meetings as they are released. 

You can also keep up to date by following ICB on social media:

https://www.facebook.com/ICBUK/

https://twitter.com/ICBUK

and joining our Facebook Groups:

ICB Members Group (NEW) https://www.facebook.com/groups/193929555232975/

ICB Students Group https://www.facebook.com/groups/ICBStudentGroup1/

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