Government to pay 80% of wage bills due to COVID-19

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Last night the Government announced further never before seen measures to support businesses affected by the coronavirus outbreak.

Leading the announcement was a pledge to support businesses who are facing making staff redundant. The scheme will be open to every employer in the country and will pay up to 80% of the wage of any employee who remains on the payroll but is unable to work due to the COVID-19 pandemic.

Payments are capped to £2,500 per employee per month and the scheme will initially run for three-months, with payments backdated to the 1st March. You may still top up those payments if you choose.

HMRC has advised that employees will need to have their employment status changed to benefit from the scheme and, depending on your employment contracts, this may need to be negotiated with each employee.

We are awaiting further details from HMRC as to when the scheme will go live and will issue a new update as soon as we have the complete information. In the meantime HMRC have advised businesses to apply for a Coronavirus Business Interruption Loan if they need immediate cashflow support. These loans will be available from Monday.

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