FINANCIAL ADVICE CENTRE NEWS
Your Summer Newsletter 2020
Smart Accountancy discuss lockdown FAQs
Since lockdown began, Smart Accountancy has been helping their clients make sense of the information provided by Government relating to claims, grants, deferment of VAT and other issues relating to taxation and business rates. We asked them to share with you some specific information about the Coronavirus Job Retention Scheme.
Mark Smith, Owner of Smart Accountancy which offers proactive Accountancy solutions and financial consultancy to businesses and individuals answers questions about government support options.
Coronavirus Job Retention Scheme (CJRS):
Government grants will cover 80% of the salary of retained workers up to a total of £2,500 per month (provided, where necessary, they obtain the consent of staff). If 80% of salary is £2,500 per month, the full salary would be £3,125 per month. This amounts to a salary of £37,500 per annum. Accordingly, our calculations suggest that any wages earned by a member of staff in excess of £37,500 are not covered by the Scheme.
From 1st August 2020 the scheme will change in order to bring back furloughed workers on a part time basis where needed and the below table shows what it will be like until 31st October 2020.
If, as an employer, you intend to access the Coronavirus Job Retention Scheme you will need to instigate the process by discussing it with specified employees becoming classified as a furloughed worker. This would mean the employee is kept on the employer’s payroll, rather than being laid off. The Government has made it clear that the scheme will run until October 2020.
Please be aware
HMRC does not send texts or make calls asking for bank or credit card details. If this happens then it is likely to be a scam. Should you require any assistance or have any questions then please do not hesitate to contact Smart Accountancy directly with any further questions for a FREE initial consultation.
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