Can someone please explain the 80 per cent salary cover

[noFlowers]

Sorry if I'm being stupid but what does this mean!

Does it mean businesses who may lay off staff get 80% of staff salaries to pay them so they can still work.

Or does it mean you lost your job due to all this and you're at home and you get 80% of your salary.

My husband is self employed, we are worried sick, someone said o you can claim a benefit of £ 90 ish thanks, that won't even cover the council tax bill.

2020newme are you saying that all self employed people should live on their three months savings, why can't everyone do that then.

My understanding is that it is a job protection grant for employed workers whose jobs are at risk due because the company they work for is at risk of collapse. So basically companies whose trade is affected by coronavirus. The state will pay grants covering up to 80% of the salary of workers if companies kept them on their payroll, rather than lay them off as the economy crashes.

I don’t think this covers businesses who are continuing to trade and whose jobs are safe but whose staff cannot work. If the job is still there and the work is still there, the job itself is not at risk as the business can continue to pay their staff.

So unless someone is in a really new business then they should have that put by. If you are running a business that isn't that profitable then it's more of a hobby than a business.

Or they have high living costs.

2020newme are you saying that all self employed people should live on their three months savings, why can't everyone do that then.

Exactly!

So on this thread not only are the self employed the only ones who are expected to see themselves through this crisis but they’re also the ones who are going to repair the giant financial hole in the economy afterwards! with what, I have no idea! You can’t make this shit up.

I work in a college refectory which closed Friday. We’re on equated pay so paid in the holidays. We’ve been offered the next 10 days pay but will owe the money or time back followed by the Easter holiday pay then nothing til further notice. I really hope this applies to us-the company I work for is American would this effect things? I’m guessing it depends if they apply for the grant?

Just had this from our accountant - we are a small business (Ltd Co) run by my hubby and myself and we employ 2 members of staff - one part time and one full time. They are covered under this if we "furlough" them. We on the other hand don't qualify as owner / director / managers but I think there is more news coming on support for this next week re self employed business owners.

Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. Eligibility - All UK businesses are eligible.
How to access the scheme You will need to:
designate affected employees as ‘furloughed workers,’ and notify your employees of this change - changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.
submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)

What’s your salary if you get paid for variable hours and have no fixed hours? We are trying to clarify this.

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers. If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.

Our advice in general is to pay your staff as normal this month to ensure they can meet their bills with no deduction
for shorter working hours if already given. You will get 80% of the total pay back.

Events will unfortunately be the wrong way round with you having to pay the money out and then reclaim it (expected the back end of April 2020) so this may cause you cashflow problems.

If you have no money as sales have simply stopped this is more difficult & there is no quick fix being offered by the Government for funds into your account over this next week. You are definitely guaranteed this money back if your staff have stopped working at any point since the 1 March 2020.

You can then make a considered view of what to do for April – by the beginning of April you will be able to see when/if we are going into total lock down and be able to consider the period this will apply to – 12 weeks or to September?

This is not repayable to the Government, however we believe that it will be taxable at your year end. We await firm guidance on this issue.

Remember the aim of this is to ensure you have staff when you reopen.

Furloughed workers definition (from an employee perspective)
If your employer cannot cover staff costs due to COVID-19, they may be able to access support to continue paying part of your wage, to avoid redundancies. If your employer intends to access the Coronavirus Job Retention Scheme, they will discuss with you becoming classified as a furloughed worker. This would mean that you are kept on your employer’s payroll, rather than being laid off. To qualify for this scheme, you should not undertake work for them while you are furloughed. This will allow your employer to claim a grant of up to 80% of your wage for all employment costs, up to a cap
of £2,500 per month. You will remain employed while furloughed. Your employer could choose to fund the differences between this
payment and your salary, but does not have to. If your salary is reduced as a result of these changes, you may be eligible for support through the welfare system, including Universal Credit.

HMRC intend for the Coronavirus Job Retention Scheme to run for at least 3 months from 1 March 2020, but will extend if necessary.

The wage subsidy is expected to apply to firms where people have already been laid off - as long they are brought back into the workforce and instead granted a leave of absence.

There are thought to be more than eight million workers in sectors that are directly affected, such as hospitality, retail and leisure.

Hope this helps!

Having to pay out in advance means it will be too late for some businesses. Or they will have to apply the deduction and then hope hmrc don't shaft them by trying to repay 80% of 80%. They need to issue clearer guidance within the next week so people know what to do with month end payroll

Thanks for that @justmanaging - that's really helpful. I think this happening over a weekend makes it particularly stressful with limited information getting through.

Thanks that is helpful

@StatisticallyChallenged Please read @justmanaging post again. There is nothing statistical in it, so should be possible to comprehend it. The Government did not give much detail in the announcement yesterday but it is clear that HMRC will administer repayments to employers via PAYE system based on their ACTUAL payroll. So whatever employers pay out to staff in March (and reported via PAYE reporting) will be reimbursed at 80% in April based on those PAYE reports, with a condition that they do not make those staff redundant. HMRC says the delay in payments is due to the fact that PAYE system is not designed for repayment to employers, so this is the hurdle they need to overcome.

My name is ironic

And the original statement from chancellor said they would cover up to 80% and it was up to the employer if they wished to top that up. If we have to pay 100% in March to reclaim 80% then that's not optional, is it.

The details are far from clear and implying they are only shows your own ignorance. And rudeness

@HollowTalk so would I but you’re expecting employers to pay 20% when they’re not making any money.

People need to realise the system is nothing to do with people having to self isolate and will apply as in the useful post from the accountant above to businesses were they might otherwise sack or put on no pay PAYE employees as a result (not because they were doing badly for a reason other than the virus)

I think the scheme is a risk for small employers however as they might keep people on, pay them and then find the detail of the scheme means they do not qualify or HMRC take ages to pay it back so I am not sure every relevant employer will use the scheme.

That's exactly it Xenia - employers are being asked to take a risk without further details being released quickly. That needs to come within days so that businesses know what to do.

Yes, I would not believe a thing the Government said until I had read the entirely regulations once they are passed eg I believe a group of MPs are planning to object to some of the measures. I suspect most will be passed as probably Labour support them too but so far we have some regulation passed in Feb but not about this money stuff. There is also a draft Coronavirus Bill which allows regulations to be made under it. Lots of this stuff is just a plan, just a draft and not in force.

Exactly, companies are having to make decisions today based on half information. I fully understand the complexity of the logistics but clarity on what the proposed rules are would actually help. Companies are going to get this wrong otherwise.

This is what was originally announced

"Government grants will cover 80% of the salary of retained workers up to a total of £2,500 a month – that’s above the median income.

And, of course, employers can top up salaries further if they choose to.

That means workers in any part of the UK can retain their job, even if their employer cannot afford to pay them, and be paid at least 80% of their salary."

That does not say employers should pay out 100% and reclaim 80%

Does this 80% apply to contracted hours or average hours worked within a certain number of weeks? My partner works way over his contracted hours.

Also not clear

We actually took on staff at the start of the month so we have people who have no payroll history. No idea where they are going to stand.

I work in travel. Currently our employer have enforced 15% reduction in working hours (salary reduced accordingly) but have also asked if any of us can take unpaid leave. If I was to offer to take unpaid leave, would this be covered under the 80% payment?

The regulations are not out yet so we do not know. Your employer should really now rethink things now there is this Government offer as they may not need to make anyone take unpaid leave if they will get 80% back from the Government anyway. However you cannot force the employer to do that.

@StatisticallyChallenged At the press conference when it was announced they were asked about the 20% and they said that employers should, if they can, pay the 20%, but that they are not obliged to do so

@Xenia thanks, appreciate it's all up in the air at the moment. I'll email my HR on Monday and find out. If it's an option it will help both them and myself out, especially now I have to have my children homeschooling, as I will have to work evenings when they're asleep. Under normal rules, because my youngest is 3 and requires much attention, WFH is not normally allowed. As it stands now, they're prepared for me to completely change my working pattern to include evenings and weekends when my department is not open at those times but it's not ideal.

@Sparklynails7

We were told it was worked out on an average weekly hours from Jan-end of March minus any holidays we have had.