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The Accountants for Growth

Access the Furlough Scheme in order to save your business and the jobs of your team

Access the Furlough Scheme in order to save your business and the jobs of your team
Information on how the Government's Job Retention Scheme is likely to work.
The objective of my blog is to help explain how the Furlough Scheme is likely to work so that you can see how it will benefit your business. I must say that this articles is based on my understanding of the Sheme, based on the information released so far and should not be relied on for advice at this stage

The Scheme's Rules
  • Employees must not work for the company during this period
  • The Scheme runs from 1 March to 31 May, but it may be extended
  • It applies to employees on the payroll at 29 February
  • The Scheme pays a grant to the employer through a new online system
  • The employer pays the employees each week.month via the payroll in the usual way

How the scheme will work?
  1. Designate the employees who you wish to lay off
  2. Feed this information to HMRC via the portal which is currently under development
  3. Government will then pay out the grant to the business/company

We do not believe that the grants will be available immediately and so businesses should look at their cash flow over the next few months to see whether you need to apply for a Business Interruption Loan here and now

How much support can I access?

The government will pay a grant which will be the lower of
a) 80% of wages calculated with reference to a defined period (this will include employers' NIC and employers' pernsion contributions)
b) £2,500 per month

Payment of employees is goverend by employment law so it is likely that the employee will expect his salray to be paid in full. If you are looking to pay employees less than the normal salary over this period, say just the 80%, then you should seek legal advice.

Please check our website regularly as we are constantly updating it with further information as it becomes available to us.

The team at James, Stanley & Co are here to make the running of your business smoother so that you can concentrate on keeping your company alive in these dificult times. By setting out the steps and plans of The Furlough Scheme we hope that we have pointed you in the right direction and that, this may save your business.

For companies with significant payroll costs who are effectively shut down, The Furlough Scheme may help you retain good team members who you have invested in, and help you drive forward when we come out the other side.

We are fully aware what a difficult time all business owners are facing with the impact of Coronavirus but we are here to help you.

Our website is being regularly updated with webinars and blogs relating to the virus so you will be able to access that information.

If you need bespoke advice then please call us.
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