Under the Coronavirus Job Retention Scheme, all UK employers running a PAYE scheme (most employers) can get support to continue paying partial salaries for people who would otherwise have been laid off.
This applies to employees who have been asked to stop working, but who are being kept on the payroll – known as furloughed workers. Employers – not employees – are responsible for applying to the scheme.
Employers need to let furloughed workers know about their change in status.
HMRC will reimburse 80% of their wages, up to £2,500 per month, to safeguard workers from redundancy.
The scheme will cover the cost of wages backdated to March 1 2020. It will initially be open for three months but will be extended if necessary.