Coronavirus Job Retention Scheme – Small Business, PAYE
All UK employers will be able to access support to continue paying part of their employees’ salary for furloughed workers—those employees that would otherwise have been laid off during this crisis.
- Payment of 80% of staff salaries up to £2,500 (gross pay) per month per worker for those who are on PAYE and unable to work.
- From 1st March2020, lasting for an initial period of three months, but will be extended “if necessary”.
How to Claim:
- Designate affected employees as furloughed workers.
- Submit information to HMRC.
A new online portal will be set up by HMRC in the next few weeks.
Owner-directors: Details are not clear yet.
- Single Owner-Director—unlikely to benefit.
- Multiple Owner-Directors—may be able to claim for furloughed directors on PAYE except for one (TBC).
These are Grants and you are not expected to repay.
Statutory Sick Pay (SSP) – Small Business, Contractor (Ltd), Ratable Property, Landlord (Ltd)
SSP For Employees
Individuals diagnosed with COVID-19 or those who are unable to work because they are self-isolating are entitled to Statutory Sick Pay (SSP) from Day 1.
Benefit—SSP will be payable from day 1 at £94.25 per week for those off-work.
- Those (including company directors) unable to work because they have been sick with COVID-19, or are self-isolating, or been advised to be in quarantine.
- Earning an average of at least £118 per week.
- Contractors working through an Umbrella company are legally entitled to SSP.
How to Claim:
- Inform employer as soon as possible.
- If evidence is required by an employer after 7 days (Employer CANNOT ask for a fit not for up to 7 days). those with symptoms of coronavirus can get an isolation note from NHS 111 online and; those who live with someone that has symptoms can get a note from the NHS website.
Who are NOT Eligible?
- Employees earning below Lower Earning Limit of £118 per week.
SSP for Employers:
Small and Medium sized businesses (SME’s) and employers can reclaim Statutory Sick Pay (SSP) paid to employees for sickness absence due to COVID-19.
- Employer can reclaim expenditure for any employee who has claimed SSP (due to being off work because of COVID-19) for up to 2 weeks SSP per eligible employee.
- UK based businesses with fewer than 250 employees as of 28th February 2020.
How to Claim:
- Employers should maintain records of staff absences and payments of SSP but employees will not need to provide a GP fit note.
- Government to set up the repayment mechanism for employers as soon as possible (reclaim disbursements to start by end of April 2020 -TBC). Applicable from 13th March 2020 on wards.
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