Coronavirus Job Retention Scheme Guidance Published

HM Revenue & Customs (HMRC) has now published detailed guidance for operation of the Coronavirus Job Retention Scheme, which is intended to reimburse up to 80 per cent of the wage costs of a ‘furloughed worker’.

The guidance confirms a number of points including:

  • The scheme applies only to workers who were on the payroll on 28 February 2020;
  • Workers made redundant since 28 February 2020 can be included in the scheme, if you agree to take them back on; and
  • The scheme covers full-time and part-time employees, employees on agency contracts and employees on flexible or zero-hour contracts.

Read the guidance for employers on the HMRC website

Read the guidance for employees on the HMRC website

VAT

For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.

Eligibility

All UK businesses are eligible.

How to access the scheme

This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return.

For further information, please contact us today.

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