Furloughed employees are employees that they face losing their jobs due to the employer’s inability to pay their salary due to ongoing pandemic.

These employees would be facing the risk of being laid off by their employers since they can’t afford to pay their wages any longer.

Good news to furloughed employees

It was therefore good news when the new chancellor announced as part of the support for ongoing pandemics for the business owner to support payment for their wages.

This temporary support is to ensure that the employers do not lay off their employment due to ongoing pandemics.

This support is referred to Coronavirus Job retention Scheme.

How does the Coronavirus Job Retention work?

Under this scheme, all UK employers will be able to continue paying their salary of the employees that are furloughed as explained above.

These employees would have been laid off by their employers due to this pandemic.

How to claim the Coronavirus Job retention relief for furloughed employees?

Just like any tax relief, there are conditions that have to be met before this relief can be claimed.

The following are the conditions that must be met to be eligible:

1. The business must be one that is trading in the United Kingdom.
2. The HMRC might request for business UTR numbers Employee reference numbers e.tc.
3. I would want to believe that these employees’ wages would have been declared vis PAYE real-time declarations.
4. HMRC are working very hard to set up an online portal that would be used to making this claim.
5. The employers would have to declare to HMRC the employees that are furloughed
6. The employers would have to notify their employees of their new positions as furlong employees.
7. They would have to confirm if they are able to change the contracts of these employees under their employment contract.

 How much is the relief given to the employers?

The Chancellor has revealed that they would reimburse 80% of furloughed workers wage cost. The limit for these wage costs is as at £2500 per employee per month.

These monies would be reimbursed through the system for reimbursement that is currently been set up by HMRC and could be available from next week.

Conclusion

If you qualify for the coronavirus job retention relief and would like and need support doing, claiming it kindly contact me.

If you would like to read more about this relief, kindly click