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Original poster

80% of peoples salary paid is a loan?

52 replies

Hazelnutlatteplease · 23/03/2020 12:53

Just heard this on the grape vine, that the 80% of peoples salary is going to be paid as a loan. does anyone have more info

OP posts:
Original poster
Hazelnutlatteplease · 23/03/2020 13:34

Yeah hes still working. But essentially hes doing the same as all the holiday makers at the weekend. Driving into highly impacted parts of London to work and back out again every evening. except he has no choice. when he heard about the 80% salary thing he thought they'd shutdown. I think i twigged yesterday. That without a lockdown hed have to keep working.

OP posts:
DogInATent · 23/03/2020 13:57

The guidelines are available on the gov.uk/coronavirus website.

The detail of how salaried workers are going to be supported with the 80% is still being worked out, but no reliable source is saying it's a loan.

The problem with the grapevine is that it likes bad news, and a lot of people are far too keen to believe what they hear on it

CookieDoughKid · 23/03/2020 14:01

Suggest your friend gets it all written down from his employer exactly what he is being offered so it's clear. If it's still not clear, then specific advice can they be provided.

slashlover · 23/03/2020 14:05

maybe ask for your title to be changed to a question instead of a fearmongering statement?

Supersimkin2 · 23/03/2020 14:06

Reporting this thread as it's a scaremongerlng lie.

JaneEyre7 · 23/03/2020 14:06

People need to stop scaremongering.

It's for employers to claim back from HMRC so not a loan.

whatistheworld · 23/03/2020 14:11

its not a loan BUT the company have to show that they would of laid them off otherwise I think. so air lines for example can claim as they had already requested un paid leave. they are not able to work. If you are still working for them as they want you to work then no they cant claim it, unless their business dries up as a result of Coronavirus or they are shut down.

Xenia · 23/03/2020 14:20

The employer can apply for the 80% support and it is a gift to the employer if they apply and if they qualify for it once the scheme is up and running. It does not yet exist in the sense the employer cannot apply for it.

It will not apply to most employees of course as their employer may not choose to apply for it and instead lay them off of that particularly as employer may not be eligible once the details of the scheme are clear.

www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-through-the-coronavirus-job-retention-scheme

Xenia · 23/03/2020 14:20

Mumsnet need to take the thread title of "Trending" as the thread title is completely untrue and in a sense is fake news or they should change the title to "is NOT a loan"

Original poster
Hazelnutlatteplease · 23/03/2020 14:23

Yeah I've just asked HQ to add a question mark. But in fairness he'd been told it as fact. Through out the OP quickly to try and get a quick reply to him.

Hes not being offered anything atm. Whilst they can still troop in and out of london daily they still have work. Bloody stupid if you ask me but without lockdown it is what it is

OP posts:
GrumpyHoonMain · 23/03/2020 14:25

Instead of getting your info on social media go to gov.uk / coronavirus.

Original poster
Hazelnutlatteplease · 23/03/2020 14:29

FFS the choice of word grape was stupid but this wasnt from social media and it was bloody obvious i was trying to get hold of some decent sources of information.

If youre going to berate me at least read the rest of the thread

OP posts:
GrumpyHoonMain · 23/03/2020 14:30

Why should I? If you can’t put the right info into the first post that’s on you.

Original poster
Hazelnutlatteplease · 23/03/2020 14:36

Hmm actually I put the information in as i had it. The information was right.

OP posts:
Supersimkin2 · 23/03/2020 15:17

The information was fake news.

  1. Employees get at least 80% of their wages as normal.
  2. They repay 0.
  3. Neither does the employer.
FeminismandWomensFights · 23/03/2020 15:22

This thread needs a MN warning at the top to call misinformation or to be taken down. This isn’t true and is just going to stress people out.

Oblomov20 · 23/03/2020 15:24

The portal isn't up and running yet, is it?

Campervan69 · 23/03/2020 15:26

My boss is refusing to do this and instead we all still have to come into work but on shortened hours and pay. Plus work out child care. It's utterly shit.

Gutterton · 23/03/2020 15:26

Is he washing his hands and keeping the 2m social distance?

PegasusReturns · 23/03/2020 15:32

Whilst neither the employee or employer will pay it back directly it’s likely that all taxpayers will be paying increases tax once this is over, not unlike how the Irish pay a discrete levy for the the bank bailout.

Oblomov20 · 23/03/2020 15:33

Xenia:

"It will not apply to most employees of course as their employer may not choose to apply for it and instead lay them off of that particularly as employer may not be eligible once the details of the scheme are clear."

Employers who choose not to apply for the 80?

Or Employers who don't qualify? Once the details are announced?

playthestation · 23/03/2020 15:59

Seriously could do with sources here

Google is rather good at providing. It cuts out the step of making a Mumsnet thread. You just ask it straight out. You could watch the news, go to any of the new websites, Facebook pages, the government website.

Xenia · 23/03/2020 16:18

Sorry about my typo post. I meant to write

"It will not apply to most employees of course as the employer may not choose to apply for it and instead lay them off or that particular employer may not be eligible once the details of the scheme are clear."

So eg Company A is doing really well despite the virus - can it get its hands on the free money? I assume not. Company B is about to make staff redundant who work in a pub under PAYE - it could apply under the scheme.

However the guidance seems to say applies to "everyone" - that can't be right so we will have to wait for the scheme to open. It may be approved in the Commons tomorrow and may be up and running by end of April.

Vinosaurus · 23/03/2020 16:29

Well on the day we furloughed all our staff and closed the doors to our business for the foreseeable (and currently have a DH in tears) this is NOT the post I wanted to see.

There is tonnes of information online about this. You/they're wrong - well I fucking hope so or bang goes our business.

akkakk · 23/03/2020 16:39

no-one knows the precise details, but the principle is:

  • furloughed staff (i.e. still employed, but not being paid), the company will be able to request 80% of their salary up to £2,500 from the government as a grant - i.e. non-repayable.

money will be tied to PAYE and will be reclaimable through a new portal that doesn't yet exist - administered by HMRC.

payable from the 1st of March, but based on the Feb PAYE figures (so that companies can't fiddle the March figures to get more)

there are anticipated issues - e.g. if the company has some work, so staff are not furloughed, then it would appear to not be applicable - yet there may not be enough work to fully pay staff, and if the company did furlough their staff to get the 80%, then they might not be able to do the work they do have and lose contracts, also putting the company under in the short or long term...

won't apply to self-employed / will catch out directors who pay themselves primarily through dividends

it is and will be one of several mechanisms the chancellor is looking at - it will not be perfect, but the government is having to respond very rapidly

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