Claim for Wage Costs with the Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme allows employers to get support when they cannot pay employees wages.

As a key part of the government’s initiative to help UK businesses this will be ready by the end of April 2020, according to the latest information.

How Much Money Can My Business Claim from the Coronavirus Job Retention Scheme ?

Employers will be able to claim 80% of their usual monthly wage costs, up to £2,500 a month.

In addition, you can claim the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.

What Period Will it Cover?

Initially it’s been agreed the arrangement will cover the period from March 1st to June 1st. The government has indicated it may be extended if conditions warrant it.

Eligibility

• You business must have started a PAYE payroll scheme on or before 28 February 2020
• You must be enrolled for PAYE online 
• Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.

What Types of Employees Can I Claim For?

• The employee must have been on your payroll before 28 February 2020
• the employee must be on ‘furlough’ (leave of absence) since the business cannot operate
• any type of contract is OK, including full-time, part-time, agency, flexible or zero-hour contracts
• furloughed employees cannot be still engaged in work for any kind for the company

Who is NOT eligible for the Scheme?

• You can’t claim for any employees who you laid off either on or after 28 February 2020. What you are allowed to do is remploy them, put them on furlough and then claim for their wages via the scheme.
• Any employees still working but on reduced hours
• Any employee on unpaid leave
• Any employee on sick leave or self isolating (they should be eligible for SSP)