Does anyone have any information about how the Coronavirus Jobs Retention Scheme will work in practice? Does the 80% reimbursement mean that it will still cost the employer 20% to retain the staff member? What about if the employee is happy to reduce their wage by 20%? These are questions my clients are asking as they see their businesses disintegrating.
There are two information pages on gov.uk on this Scheme - one for employers and one for employees. The one for employees has more information and seems to say that the 20% is optional for the employer; it also says that the employee cannot work at all. I have clients where there might be some work needed - and if they do that it seems to remove them from this Scheme - is that right?
Thanks Simon and Caroline, lots are asking this question currently. As noted, the employer can choose to top up the furloughed workers wages with the additional 20% but it is not mandatory. They need to apply for the scheme. Our Tax Faculty had a productive call with HM Treasury yesterday and is currently creating guidance which will shortly appear on our resource hub, www.icaew.com/coronavirus.
Thanks Richard and Caroline, nuts and bolts guidance on how this scheme is going to work will reduce a lot of anxiety within the business community and will be greatly valued. I look forward to reading the guidance on the resource hub.
Hi Caroline, thanks for your reply. I had a look at the gov.uk pages and they seemed slightly ambiguous to me. I am hopeful that ICAEW Tax Faculty may be able to eliminate some of my queries.
Most people are due to be paid on Friday so payroll is being run now. Does ICAEW have any details on how the JRC interacts with normal payroll i.e. do we run 100% of pay for furloughed employees as normal or exclude them from the payroll altogether?