Government’s Coronavirus Job Retention Scheme launched this week

(2 minutes to read)

The government’s furlough scheme is now open for applications 10 days ahead of schedule, with 5000 HMRC staff operating the scheme – which is expected to help thousands of firms across the UK.

The Coronavirus Job Retention Scheme went live earlier this week, with businesses able to claim up to £2,500 a month towards staff wages.

Employers can apply for direct cash grants through HMRC’s new online portal – with the money expected to land in their bank accounts within six working days.

Last week the Chancellor announced the scheme will be extended for a further month until the end of June, to reflect continuing Covid-19 lockdown measures.

Adam Marshall, BCC Director General, said, “The opening of the Job Retention scheme is an important milestone for businesses, who can now begin to access the cash they need to pay their staff and protect livelihoods.

“The government deserves credit for the speed, scale and flexibility of its response to the challenges facing our business communities. The focus should now be on delivering this support to firms on the ground.

“Our research indicates that two-thirds of firms have furloughed some portion of their workforce. With April’s payday approaching, it is essential that the application process is smooth and that payments are made as soon as possible. Any delay would exacerbate the cash crisis many companies are facing and could threaten jobs and businesses.”

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The CIPD is calling for the government to make the Job Retention Scheme more flexible now it’s been extended, so furloughed staff are allowed to carry out work on reduced hours for their existing employer where possible.

It believes the benefits of doing so include:

  • Helping organisations to bring back workers from furlough gradually, which is likely to be necessary if lockdown measures are phased out over time – and because demand in the economy is likely to recover slowly.
  • Enabling organisations to flex their workforce more efficiently, taking pressure off non-furloughed staff and enabling furloughed staff to keep engaged and contributing reduced hours where possible.
  • Potentially reducing the cost of the scheme to the taxpayer.

Peter Cheese, chief executive of the CIPD, commented, “The Government should be commended for its swift action in bringing in the Job Retention Scheme, which has helped protect jobs.

“However, with the scheme now being extended, greater flexibility needs to be built into it. As it stands, furloughed staff are not able to do any work for their existing employer, meaning organisations which could provide some work for staff on reduced hours are not able to.

“This change would enable employers to bring back workers gradually, which is likely to be necessary if lockdown measures are phased out over time. It could also help bring down the bill for taxpayers, who will ultimately have to fund the cost of the scheme.

“The Government has shown its prepared to adapt and improve its rescue packages for businesses and workers, and needs to do so again here.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
  • Same day payments- We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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