Coronavirus Job Retention Scheme
The CJRS was updated on 17 April 2020 and has been extended until October 2020. The scheme supports businesses by allowing them to retain their workforce during the Covid-19 pandemic.
Who is eligible for the Coronavirus Job Retention Scheme?
To be eligible for CJRS an employer must agree with the employee that they are a 'furloughed worker'.
• Employees must be notified that they have been furloughed.
• Employees must be furloughed for a minimum of three weeks.
• The employee cannot do any work for the employer that has furloughed them.
• You can claim 80% of wages up to a maximum of £2,500 per month per furloughed employee.
• A separate claim is needed for each PAYE scheme.
• You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020.
• An RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020.
• You must have a UK bank account.
Support for the self employed during the Coronavirus pandemic
HMRC have also announced support for the self employed during the Covid-19 pandemic.
The key points from the announcement are as follows:
• Self-employed individuals are to be provided with a taxable grant to cover lost earnings as a result of the COVID-19 outbreak.
• This will cover 80% of their average monthly profits, calculated over the previous three years (or less for those who have not been trading for this length of time).
• As with the job retention scheme, this will be capped at 2,500 pounds per month and will only be available for those with trading profits of less than 50,000 pounds.
• This will only apply to those who are already self-employed to prevent abuse of the system.
• The scheme is expected to be in place by the start of June and HMRC will contact relevant individuals directly.
• Individuals who haven't submitted their 2019 tax return will be given 4 weeks to get their tax affairs up to date and benefit from the scheme.
How AMR Bookkeeping is supporting our clients during Covid-19
We understand the pressures businesses are facing during this period and will assist clients with advice and support to help guide you through the coming weeks. Our team continue to keep up to date with changing guidelines regarding the CJRS and will ensure your bookkeeping and payroll services remain our priority.
We are also supporting new and existing clients with cashflow reviews and recognise that now more than ever understanding your business and its financial position is one of our most valuable resources.