The HMRC portal to process the Coronavirus Job Retention Scheme (CJRS) will have the capacity to handle 450,000 claims an hour when it goes live on April 20.
Once claims have been submitted, payment for furloughed workers can be expected within four to six working days.
Most importantly, companies will be able to claim furlough payments 14 days in advance of an employer’s payroll run, thereby easing immediate cash flow pressures.
The Job Retention Scheme allows businesses to furlough their staff and claim 80% of their wages, up to £2,500 per month. This has been put in place to safeguard workers who would otherwise be made redundant.
However, there are criteria that need to be followed to allow the business to claim these wages on the employees’ behalf. The main points are as follows:
- Employee has to be employed before or on 28th February, is on the payroll and is in agreement to be furloughed
- Employer has to put the furlough agreement in writing to the employee
- The employee must be furloughed for a minimum of 3 consecutive weeks
- Once furloughed the employee cannot undertake work for, or on behalf, of the business
- While on furlough, the employee’s wage will be subject to usual income tax and other deductions
- You can choose to top up your employee’s salary, but you do not have to
- If contractually allowed, your employees are permitted to work for another employer whilst you have placed them on furlough
Full information and further guidance here
Posted on: Wednesday 15th April 2020