Furlough scheme opens for claims

Here's everything you need to know about the coronavirus job retention scheme

Furlough scheme opens for claims
Image: Bigstock.

The government’s furlough scheme to help pay wages and support businesses amid the Covid-19 pandemic has gone live.

HMRC’s online coronavirus job retention scheme (CJRS) service went live on April 20 with the first claims being paid within six days.

Applicants can claim for wages using the government gateway user ID and password generated while registering for PAYE online.

Following HMRC checks, the claim amount will be paid by Bacs within six working days.

File-only agents and payroll bureaus will not be able to access the service “due to data protection reasons”.

With a design capacity of 450,000 users per hour, HMRC says it is ready to meet the initial influx of backdated claims.

HMRC has also said it would be setting up an online “whistle-blower” service for workers to report employers who abuse the system.

Coronavirus job retention scheme explained

The job retention scheme pays employees 80 per cent of their usual earnings, capped at £2,500 per month per worker.

It’s designed to support businesses during the fallout from Covid-19 while keeping employees on the payroll.

Furloughed workers cannot undertake work for or on behalf of their employer.

Any UK business with employees can apply for the scheme as long as they had set up a payroll scheme before February 28.

Empolyees that started their job after February 28, 2020 are not eligible but those that were made redundant after this date can be put on furlough rehired

The coronavirus job retention scheme was originally intended to run to June 1, 2020, however it has been extended until at least the end of that month.

In a statement, Chancellor Rishi Sunak said: “Our unprecedented job retention scheme will protect millions of jobs across the country and is now up and running.

“It’s vital that our economy gets up and running again as soon as it’s safe – and this scheme will allow that to happen.”

Let us know if you’ve already applied by sharing your comments and experiences below.

Home Page Forums Furlough scheme opens for claims

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
  • #194326 Reply
    Steve Graham

    I am expecting to get furloughed any time now.
    I work as a rep for a motor factors and am paid a salary + OTE. Will I get 80% of my average previous 12 months pay or just 80% of my basic salary?

    #194464 Reply

    The Job Retention Scheme may be up and running but as yet is not capable of processing claims where the employer intends to ‘top up’ his employees salary.
    I can’t find any information as to when the website will be updated.
    Still no word yet on the Self Employed Income Support Scheme.
    I am sure both of these represent very complex issues and think the HMRC are doing their best to resolve them. I am just pleased the is some help available for my employees and myself during this difficult time for everyone. Hope you all stay safe. A MASSIVE THANK YOU TO ALL OUR WONDERFUL NHS STAFF.

    #194468 Reply

    In reply to Steve’s question.
    If your contract says you get commission then the key fact is whether that is discretionary commission or not.
    If your employer can vary your commissions then that is classed as discretionary and is not covered by the 80% Furlough Scheme.
    Just having the same problem with my son who works in car sales for a dealership.
    His basic pay is less than minimum wage for the hours he works and he makes that up in sales commission. However if he does a deal where his sales manager thinks the company have not made the amount of profit on the deal they were expecting then they can reduce his commission accordingly. That is at their discretion!! Therefore not covered by Furlough Scheme and so just very basic wage for him. Two children and a mortguage to support this is just scandalous. I hope all the motoring bodies are onto this one and fighting for these members of the motor trade.

Viewing 3 posts - 1 through 3 (of 3 total)


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