'Furloughed' is the Government’s term for those employees who are available but cannot work as a result of the national coronavirus measures in place, including social distancing.
For you to qualify for HM Revenue and Customs’ Coronavirus Job Retention Scheme, your staff should not undertake work for your business while they are furloughed.
HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC is working urgently on setting up a system for reimbursement as existing ones are not set up to facilitate payments to employers.
This should therefore, enable you to retain your loyal and experienced staff, while easing the financial strain of having to pay them with your business on hold during the coronavirus outbreak.
From 1st November 2020 this scheme will be replaced by the Job Rention Scheme.
Date published 24 Mar 2020 | Last updated 25 Sep 2020This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.