Furlough Facts…
Finally the finer details were revealed,  apart from one minor detail, the way to calculate it!

URGENT AMENDMENT TO FURLOUGH TEMPLATE- PLEASE READ NOW!! (Original post below)


 Yesterday evening we sent you the example template letter below which confirmed that furloughed employees will get 80% of their salary.

If you have already sent a letter please send an amendment straightaway confirming how this will be calculated.

As there is a huge range of potential calculations dependent on income levels, these will need to be calculated on a case by case basis. For further information please speak to your Client Manager or our payroll team. 

We will issue any further updates we receive this evening – so keep a look-out

Further Furlough information…
Although we are not in the position to advise on the legal implications of furloughs and it is important that you review your contracts to ensure that you are able to place employees on furlough. Click Here to find some template letters that you can use and adapt to your needs. However, please note that if you choose to use them you do so at your own discretion.

Stay Safe and Stay Healthy


Heroes

Despite a real sense of  disappointment as still no measures are announce to help the self employed this evening, we must remind ourselves that another fierce battle rages too.The government priority over the last two days has clearly been focused upon this front. 

With a rapidly intensifying health crisis that will bring an unimaginable death toll, so many brave people are putting themselves at risk to help.

So we are pausing tonight, to acknowledge the contribution of these every day heroes, especially those who we are. proud to call our clients .Thank you


 Welsh Government SupportAs the demands for support for the self-employed intensifies we will surely have more news for you soon, in the meantime our team have been scouring the latest updates to give you the information you crave. As always please speak to your client manager for specific help and advice

Johanna Evans spoke to the Welsh Government today this is what they told us

  1. Business Wales can provide advice and support regarding cash flow and staffing implications and contingency planning as the outbreak develops. They can arrange a referral at any time to a Business Advisor Team for support if needed, you can contact Business Wales directly on 03000 6 03000 to arrange this.

For the latest information and updates please refer to the Business Wales website: https://businesswales.gov.wales/

  1. There is general guidance for employers and businesses available on GOV.UK https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/guidance-for-employers-and-businesses-on-covid-19
  1. If you think you may need additional finance, your first port of call should be your finance provider – whether that’s a bank or another lender. The sooner you approach them the better – they will help you where they can, and will point you toward alternative sources of finance who may be able to help even if your current provider cannot.
  1. The UK government has announced a temporary Coronavirus Business Interruption Loan Scheme which will launch on March 23 to support businesses to access bank lending and overdrafts. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will support loans of up to £5 million in value. Businesses can access the first 6 months of that finance interest free, as government will cover the first 6 months of interest payments.

The scheme will be delivered through commercial lenders, backed by the Government-owned British Business Bank. It is intended to support the continued provision of finance to UK businesses during the Covid-19 outbreak. It will operate in much the same way as the current Enterprise Finance Guarantee but on more attractive terms for both businesses and lenders. The Business Interruption loan Scheme is going to take a few weeks to set up. For further information on the scheme, please monitor the British Business Bank’s website. https://www.british-business-bank.co.uk/ British Business Bank telephone number is: 0203 772 1340

  1. The Development Bank of Wales has loan and equity funding available immediately to Welsh businesses and the Welsh Government is working closely with the Development Bank for Wales to consider additional support to help businesses through the Covid-19 impact. For further information: https://developmentbank.wales/ or call 0800 587 4140
  1. All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. Businesses can contact HMRC’s new dedicated COVID-19 helpline from 11 March 2020 for advice and support.

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.

Valued Added Tax (VAT) payments will be deferred for 3 months. The deferral will apply from 20 March 2020 until 30 June 2020. All businesses are eligible. This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period.

To ensure ongoing support, HMRC have made a further 2,000 experienced call handlers available to support firms and individuals when needed. If you are concerned about being able to pay your tax due to COVID-19, then call HMRC’s dedicated helpline on 0800 0159 559. For more information, please check the HMRC website: https://www.gov.uk/government/news/tax-helpline-to-support-businesses-affected-by-coronavirus-covid-19

For the self-employed, Income Tax payments due on 31st July 2020 under the Income Tax Self-Assessment system will be deferred to 31st January 2021. This is an automatic offer with no applications required. No penalties or interest for late payment will be charged in the deferral period.

  1. Coronavirus Job Retention Scheme: All UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.  All UK businesses are eligible

HMRC will reimburse 80% of the furloughed workers wage costs, up to a cap of £2,500 per month (employers will need to designate affect employees as ‘furloughed workers’ and submit the required info to HMRC)

HMRC are working urgently to set up a system for reimbursement.  Existing systems are not set up to facilitate payments to employers.

  1. Universal Credit / Employment and Support Allowance may be available to yourself or to staff if you lose earnings due to the outbreak. For further information see https://www.understandinguniversalcredit.gov.uk/coronavirus/  – or call 0800 328 5644 or 0800 328 1744 for Welsh language speakers.
  1. A new package provides, in 2020/21, retail, leisure and hospitality businesses in Wales with one year business rates relief and a grant of £25,000 for retail, leisure and hospitality businesses with a rateable value of between £12,001 and £51,000. It also provides a £10,000 grant to all businesses eligible for Small Business Rates Relief with a rateable value of £12,000 or below.

To check your premises rateable value please see the Valuation Office: https://www.tax.service.gov.uk/business-rates-find/search?

This new package – extending the package announced on 17 March – matches the measures in England announced by the UK Government yesterday, providing a much needed boost for small businesses struggling to cope with the impact of the Coronavirus crisis.

  1. The Welsh Government is also exploring ways of supporting businesses who do not qualify for this scheme, details of this support will be added to the Business Wales website once confirmed.

Furlough further information….
 Although the portal is not yet ready to report furloughs these are some of the key points to be aware of:

  •  National minimum wage should not take affect next month.
  •  Calculated on 80% of gross wages.
  •  Based on average of 12 weeks salary to February 2020 we think. Therefore if they were not employees at that time then they cannot claim the 80% for those individuals.  Those employees can go to their previous employer and ask? (not set in stone yet!!)
  •  Holidays will still accrue and employers can look at this when they return
  • Employers can top up the 20%, but not compulsory
  •  Payroll will continue to be processed and year end completed.
  •  Grant will be available via an online portal which is currently being set up by the Government.
  •  The employee must be informed in writing and designated as furloughed staff.
  • Available from 1st March 2020 only start from the date the employee goes on furlong. 
  •  Initially run for 3 months but Chancellor confirmed no end date so could be extended. 
  • Furloughs need to be agreed between both parties and not enforced. Requires mutual agreement

Although we are not in the position to advise on the legal implications of furloughs and it is important that you review your contracts to ensure that you are able to place employees on furlough. Click Here to find some template letters that you can use and adapt to your needs. However, please note that if you choose to use them you do so at your own discretion.

Stay Safe and Stay Healthy

Return to news