COVID-19 – Update 4

Dear Clients,

The new gateway has yet to be set up to apply for the Job Retention Scheme for employers; we will keep you informed on developments.

We would like to highlight one of the terms of the scheme which is not clear from the information on the HMRC site linked by us yesterday as:-

COVID-19: support for businesses

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

This suggests that HMRC will pay 80% of furloughed workers salaries leaving the employer picking up 20%.

However if you read the information provided in the other link we provided:-

COVID-19: guidance for employees

To qualify for this scheme, you should not undertake work for them while you are furloughed. This will allow your employer to claim a grant of up to 80% of your wage for all employment costs, up to a cap of £2,500 per month.
You will remain employed while furloughed. Your employer could choose to fund the differences between this payment and your salary, but does not have to.

This is a huge difference for employers, many of whom would be thinking that they cannot afford to pay 20% of employees salaries for an indefinite period while they are unproductive. They don’t have to.

As stated above the new online portal has not yet been set up to claim this payment but if you have any questions please contact Dennise on:

01539 870087 or email