COVID Job Retention Employers NI and Pension contributions

lowrihedd

Working for a non-profit with severely impacted cashflow and trying to prepare this week's pay run.
We will only be paying staff 80% and cannot meet the other 20%. Will we be receiving 80% of their basic wage or 80% of our overall salary bill inc statutory pension contributions and employer NIC? Any news on when the portal will be ready to relay the staff being furloughed (aka laid-off non-contractually but by mutual agreement)? 

calcotti

Until government provide full details none of us can answer that.

Thea_Lewis

Bedridden, I employ a carer. Some ten years ago the care was provided for by the local council under a direct payments scheme but with cut-backs I now employ the same carer directly from my own funds (pension/ benefits). I live at my sister and brother in law's house and with the health of all in mind (3 people in their late 70s with health conditions placing all in the 'at risk' category.) Last week chose to ask the carer to stay away, promising to keep her retained on her usual pay as at the time it was thought the 'lock-down' might only last a few weeks.

Is there any possibility that my 'employer status' will be eligible for the HMRC benefits announced for 'UK businesses' under the Coronavirus Job Retention Scheme? (My carer is a genuine employee as I enter PAYE into the HMRC webpages, pay NI and also separate employee insurance to cover possible injury to my carer whilst working, also, I make contributions to NEST under the employer statutory pension scheme). The 'lock-down' would now appear set to continue long beyond what was originally suggested and I'd be grateful for any help/advice from anyone......

Jeremy535897

On the face of it, yes, but we only have the outline of the scheme. The scheme is designed to help businesses affected by coronavirus to keep people on the books rather than making them redundant.
 You are clearly an intelligent person (I suspect most able bodied people half your age would be daunted by operating a PAYE scheme, even for only one employee like a carer or a nanny), so I will make the following point.
I would suggest that the scheme is really for businesses whose trade is hit by coronavirus (for example a pub that has to shut), rather than businesses whose owner is affected by coronavirus (your case). You could accuse me of splitting hairs, and I can see no risk to you from trying, but if you could afford to pay her wages anyway, there is a bit of a feel of tax avoidance to it.

Thea_Lewis

Thanks Jeremy.

I can see where you might be coming from, but as someone bedridden for over 25 years and with no employment over that period for anyone tied to a bed, I only have the meagre supply of funds accrued during the period I was working. I thoile to see my savings going 'nowhere' when others are being propped up.

True, it allows my carer to live with the wage she has become accustomed to, (and pray God when all this is over she will come back to us) but with the medical problems of other members of the household (apart from myself, one with heart failure and the other a partially incontinent spinal patient) 'throwing' the savings away does come a bit keen when we are presently struggling  just to keep fed and clean.

Jeremy535897

I sympathise, and as I said, there's no harm in asking (when there's someone to ask). I think the Government's wording is confused . It says:

"Support for businesses through the Coronavirus Job Retention Scheme

Under the 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.

Eligibility

All UK businesses are eligible.

How to access the scheme

You will need to:

• 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
• submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan."

The whole thread talks about businesses, and the eligibility bit says "all UK businesses", but it starts with "all UK employers". Now that could be argued to be restricted by the eligibility rule, but we know charities and other non-profit organisations are included. So I am back to where I began, which is that I don't think you qualify, but I don't see why you shouldn't try. if you really mean to make the carer redundant without the grant.