HMRC's new web-portal for claiming support for furloughed workers went live yesterday, with over 140,000 employers submitting claims on the first day.
Of all of the UK government's economic measures announced to help people through the coronavirus outbreak, perhaps the most important has been the Coronavirus Job Retention Scheme. The scheme is designed to protect against the nation-wide mass layoffs currently taking place in parts of the US by encouraging employers to retain their workforce even if their business has dried up during the pandemic.
With offices closed and the country on lockdown, most businesses will have some employees who can no longer do their jobs. Rather than letting them go, employers can choose to furlough the workers -- put them on temporary leave -- and the government will pay up to 80% of that employee's wages (up to £2,500 per month). The scheme will have a high impact in Northern Ireland, where wages are significantly lower than London levels.
Though the payments will be backdated from March 1st, the website that employers must use to claim the funds only went live yesterday. With payday quickly approaching, the site was so heavily bombarded by companies making claims that it faced technical difficulties after just 30 minutes. The site eventually stabilised and over 140,000 employers are reported to have used it in the first day of operations.
Detailed guidance has now been published on exactly how employers can calculate the amount they are entitled to claim for an employee, and HMRC will allow employers to select the way they think best fits the employee. All of the grant must be paid to the employee, and the company is not obligated to (but may choose to) top up the 80% pay to the employee.
Source: BBC News
