Guidance for British Luxury Businesses – Coronavirus Job Retention Scheme
In this new feature, we aim to share official Coronavirus guidance surrounding the financial support available for British luxury businesses from the government. We encourage members to check back regularly as this story will be updated as advice is published.
For the most up-to-date government advice on business support please click here
Following the announcement of a package of financial support from the Chancellor to help business tackle the unprecedented challenges in light of the Coronavirus outbreak, Walpole is creating a library of resources to help member navigate what help is available and how to access it.
As you are no doubt aware, advice for businesses is evolving very rapidly and guidance still being published and updated, so please do check back if you can’t find what you need immediately.
Likewise, please tell us your questions, concerns and challenges about either accessing financial support or broader business impacts and we will do our best to help and also continue to feedback what you’re saying to government via the CBI, with whom we’re in daily contact.
Today we look in more detail at the Coronavirus Job Retention Scheme:
Coronavirus Job Retention Scheme
What is it?
– All UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.
– This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’.
– HMRC will reimburse 80% of their wages, up to £2,500 per month.
– The scheme will cover the cost of wages backdated to March 1st and is initially open for 3 months, but will be extended if necessary.
– The scheme covers employees in your employment on the 28th February.
– Employees are not able to work during the time but maybe able to volunteer
– All employees with a PAYE scheme are eligible.
– The employer will be expected to pay the salary and then apply to HMRC for the reimbursement.
– Expect to see the first grants being paid within the coming weeks and by the end of April.
– It is a grant and so the employer does not need to pay the funds back.
How do I access it?
You will need to:
1. Designate affected employees as ‘furloughed workers,’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.
2. Once the new online portal is live, submit information to HMRC about the employees that have been furloughed and their earnings (HMRC will set out further details on the information required)
When can I access it? HMRC are working urgently to set up a system for reimbursement.
If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.
Further financial support schemes
The Coronavirus Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Loan Scheme supports small and medium-sized businesses with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years.
The Covid Corporate Financing Facility (CCFF)
The CCFF facility is designed to support liquidity among larger firms, helping them to bridge Coronavirus disruption to their cash flows through the purchase of short-term debt in the form of commercial paper.
Read scheme details and how to apply here: Covid Corporate Financing Facility