Government will cover 80 per cent of business staff wages, up to £2,500 per employee per month.
If you are an employer with a PAYE scheme, you can access support to continue paying part of your employees' salary instead of laying them off. This applies to employees who have been asked to stop working because of coronavirus, but are being kept on the payroll. They are known as ‘furloughed workers’. Until August 2020, HMRC will pay 80 per cent of their wages, up to £2,500 per month.
All UK-wide employers with a PAYE scheme that was created and started on or before 19 March 2020 including:
- Recruitment Agencies (agency workers paid through PAYE)
- Public Authorities
The employer must have a UK bank account.
The scheme closed to new entrants on 30 June 2020.
From 1 July 2020, businesses using the furlough scheme will be able to bring furloughed employees back to work part-time.
From August 2020, the level of government grant provided through the Job Retention Scheme will be slowly tapered and businesses will be asked to contribute a share. Read about the changes to the Coronavirus Job Retention Scheme.
If your business needs short-term cash flow support, you may be eligible for the Coronavirus Business Interruption Loan Scheme.