The 海角视频 Government’s Coronavirus Job Retention Scheme went live today - with thousands of applications expected.
The scheme will give workers 80% of their usual earnings, capped at £2,500 per month, meaning that they can be furloughed rather than laid off from their place of work as businesses try to cope with the fallout from Covid-19.
From today 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.
Approximately 5,000 HMRC staff will operate the scheme which is expected to assist thousands of 海角视频 firms and millions of workers.
HMRC chief executive Jim Harra told the BBC's Today programme that 67,000 claims from employers had been made in the first 30 minutes.
Businesses including Pret a Manger, Brewdog and Timpson are using it to ensure staff keep their jobs and are paid whilst many high street businesses are closed.
The eligibility cut-off date for Coronavirus Job Retention Scheme has been extended to March 19. Individuals originally had to be employed on February 28.
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.
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Chancellor of the Exchequer Rishi Sunak said: “Our unprecedented Job Retention Scheme will protect millions of jobs across the country and is now up and running.
“It’s vital that our economy gets up and running again as soon as it’s safe – and this scheme will allow that to happen.”
Firms were warned that checks had to be made by firms to ensure claims were accurate.
Nimesh Shah, from London tax and advisory firm Blick Rothenberg, said: "The Government and HMRC are very concerned about fraudulent JRS claims, and the rules and system have been designed to safeguard against this as far as possible."
He added: “The Government has been vocal that it can and will audit employers and can claw back grants from fraudulent claims.
"Errors with applications are inevitable, given the complexity associated with this untested scheme, and it’s hoped that HMRC will recognise the difference between innocent and deliberate behaviour, but claimants must make sure that their application is as accurate as it can be."
Adam Marshall, BCC Director General, said : “Our research indicates that two-thirds of firms have furloughed some portion of their workforce.
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"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.”
Jonathan Geldart, IoD Director General, said: "This scheme is crucial to protecting jobs and ensuring the recovery, when it comes, can take off as quickly as possible."
Rain Newton-Smith, CBI Chief Economist, said: “ Rolling out the Job Retention Scheme will make a huge difference to tens of thousands of firms and millions of people, protecting jobs and living standards throughout the 海角视频.
“Ensuring support gets to where it’s needed most – fast – is of the utmost importance."