Update: Coronavirus Job Retention Scheme

Following a meeting with HM Revenue & Customs (HMRC) the Institute of Chartered Accountants in England and Wales (ICAEW) have issued some notes on how they believe the Coronavirus Job Retention Scheme will work.

The notes below provide an update to our original piece published earlier in the week which is copied below for reference.

Updates:

1. HMRC will be the body that administers the grant scheme.
2. Now confirmed that Charitable and not for profit organisations will be eligible.
3. Whilst the scheme is backdated to the 1 March grants will only be available when employers have agreed furlough terms with their employees and they have stopped work, subject to employment law in the usual way.
4. Available to all employees on the payroll at 28 February.
5. The employer will pay the employee through payroll and as such RTI submissions will still be maintained. This actually makes a lot of sense as it is a system that already works well.
6. Relevant employees must be designated as furloughed employees.
7. The scheme will not cover dividends where directors/ shareholders of owner managed companies pay small salaries and the balance as dividends.
8. The grant will cover all employment costs including; salary, employer pension contributions and employer NIC.

Disclaimer - All information in this post was correct at time of writing.