What Is Coronavirus Job Retention Scheme?

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COVID-19 has seriously impacted our lives whether it is physically, mentally, or financially. With the global pandemic shutting everything down, a lot of businesses and employees have suffered the loss of their jobs. The government of the UK has recently announced a coronavirus job retention scheme according to which employers and employees can claim for the loss of their wages as different companies had to cut down their employees or furlough them due to the worsening situation. In most of the cases for getting the calculated claim for the wages, employees must ask their employers to apply for the claim.

Who Can Claim

Following are some of the conditions through which employers, employees, funded organizations, or administrators can apply for the claim scheme. Although all the employers are allowed to apply for the grant, there are certain limitations for their applications as well. To understand things better, you can also hire employment solicitors near me.

Employers

Every employer who has a UL bank account and PAYE scheme can apply for the claim. However, if you are claiming for an employee before or on 30 October 2020, you must have furloughed that employee once before 1st July 2020 and you have already claimed for it before. In other cases, you can apply for the furloughed employees’ wages that will convert to their pension costs after 1st November 2020.

Furloughed Employees

For furloughed employees that are fully or partially furloughed through an agreement, the employer is eligible to apply for the grant. However, you cannot ask them to work or make money for your organization once you have asked them to for furlough. You will have to pay them as long as the application for the retention scheme isn’t approved. In such cases, the employer must submit the agreement copies and statements that show the transfer of the wages for the furloughed employees.

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Public Funded Organization

If you are a publically-funded organization, you must use the fund to pay your staff as you are not allowed to furlough your staff to get the coronavirus retention scheme claim. However, if your organization is not fully funded, you can apply for the scheme with complete documentation and proof of partial or no funding from the public sector.

Administration

If an administrator has taken over the management of the company, he can furlough the employees and apply for their claims. If you are an administrator who is claiming for his employees for a period that ends before 31st October 2020, the employees must be furloughed by the previous employer for at least three weeks between March and June 2020.

How To Claim

To apply for this claim, you will need to have a Government Gateway ID and a password to get registered for online PAYE. Make sure that you apply for the claim in time as you are not allowed to apply for it for more than 14 days before the limit of your claim ends. However, you can apply for the claim 14 days in advance. 

The Latest Extension On The Policy

According to the latest policy change, the scheme that was expected to be closed on 30th November 2020 is now extended. You can apply for the coronavirus job retention scheme till 1st January 2021 while the claim procedure will be extended till 31st March 2021.

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