THE CORONAVIRUS JOB RETENTION SCHEME

THE CORONAVIRUS JOB RETENTION SCHEME

Through The Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during the crisis. HMRC will reimburse 80% of designated furloughed workers wage costs, up to a cap of £2,500 per month. The scheme will initially run for three months from 1 March 2020. To access the Scheme you 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 shortly).

While it has been clarified that the employer is not obliged to top up the government payment, it is not clear if the 80% contribution will cover employer NI or pension contributions. If the employer still has to bear these costs, it may not be a viable option for those who are seriously financially distressed. The announcement was clear that this will not override employment law protections.

For those employers for whom the scheme isn’t sufficient to prevent job losses, a reminder that the Insolvency Service’s redundancy Payments Scheme operates the Financial Difficulty Scheme. This was set up to provide assistance to employers in making statutory redundancy payments while at the same time avoiding additional job losses if the employer became insolvent.

More details about making staff redundant can be found here.

Client Testimonials

I always get quick, clear and definitive responses from the Harwood Hutton tax team – commercial answers to commercial issues.
Robin Berry – Morgan Management
Right from the outset Harwood Hutton gave us direction and great advice – and that advice has evolved over the years as we’ve grown. We’re both medium-sized companies providing a bespoke service – one furniture, one accountancy – and the relationship works.
Andy McCarron, McCarron and Co
I’m deeply impressed with Harwood Hutton’s extensive knowledge of tax arrangements for residential and commercial property landlords.
Qadeer Ahmed, MD, ABA Finance
They really took their time to understand what was important to us and our business and the expertise we required. Whoever we speak to at HH, we get the same fantastic response and technical input. It’s a real partnership.
Edward Finch, group MD, MRIB insurance brokers
I have worked with the directors at Harwood Hutton on a number of mutual client matters over many years. The reassurance of their clear, commercial and focussed advice is one of the main reasons I regard this as one of my most valuable professional relationships.
Frank Wessely, Partner, Quantuma LLP
Harwood Hutton never seem to rest on their laurels. They are always seeking out new avenues and ways to improve their offering. A very forward-thinking company with staff who are always well briefed and who approach each task with drive.
Karl Austen, MD, Surefoot Communications
We have engaged Harwood Hutton in several areas of structuring, including VAT issues, decoupling an SPV from a group structure and HMRC clearance for a transaction. The team have exceeded all expectations by being proactive, measured and very thorough.
Adam Fawsitt, Director, FHT Limited
We moved to Harwood Hutton as they delivered a succinct and professional proposal. If anything, we have been more impressed post-move. They are a fantastic company to work with. They do truly differentiate. They have the skills and capabilities of a mega firm but with a personal service.
Edward Finch, group MD, MRIB insurance brokers

THE CORONAVIRUS JOB RETENTION SCHEME

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THE CORONAVIRUS JOB RETENTION SCHEME

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