Coronavirus Job Retention Scheme – Q&A

Blue Isometric Design

Announced yesterday, the key measure introduced is the Coronavirus Job Retention Scheme. Here we answer some of the questions on how it works and businesses concerns.

What does the scheme do?

Employers that are now under temporary pressure can claim a grant to cover employees’ wages that they will need once the coronavirus crisis passes but are currently unable to provide work for.

HMRC will reimburse the business for 80% of workers wage costs, up to a cap of £2,500 per month.

Employers can choose to fund the difference but do not have to.

Employees can no longer work whilst HMRC reimburses their employers

How do I use the scheme?

Employees that you can no longer afford to keep due to the situation will need to be classified as a “furloughed worker”.

If you as an employer intend to use the scheme, you will need to discuss with the relevant employees that they will be reclassified. This change remains subject to employment law and depending on the employment contract, may be subject to negotiation.

The employee must be kept on the payroll rather than being taken off, but will no longer work for you.

A HMRC online portal will be set up, which will require further information on employees that have been furloughed – more detail on this will be released shortly

How long will the scheme be in place for?

The scheme has been backdated to the 1st March – so any employers already affected can claim back the salary costs of any “furloughed workers” to date, and at present the scheme is to run for 3 months.

When will the first payments be made?

At present HMRC do not have a mechanism for making repayments and are setting up a system for reimbursement, but it is expected the first payment of the grants will be in April.

What if I need short term cash flow support immediately to pay the payroll this month?

To bridge the immediate gap, the recommendation from government is to consider a Coronavirus Business Interruption Loan. Our previous straight to the points have covered what is known on them so far, the British Business Bank has detailed eligibility requirements on the loans. More information on them is expected to be released on Monday.

If you are typically in a VAT payment situation, this quarters VAT liability is now also deferred – the intent of this is to also provide businesses with a short term cash flow advantage.


These are unprecedented times and this is an unprecedented measure to protect jobs and business. Should you have any further concerns, please do be in touch as we continue to try to work through this together.

Why Choose Hamlyns?

Personalised Service

We take a unified and unique approach to accountancy; providing an individual service to our clients

Time & Dedication

We take the time to offer proactive and innovative advice that help our clients achieve their long-term goals

Holistic Approach

Our holistic approach offers a combination of professionalism, a personal touch and attention to detail

Quality Assurance

Every one of our professional team is a member of one or more of the ICAEW or the ACCA

What Our Clients Say

I appreciate Hamlyns expert and informed guidance and helpful approach.

Managing Director, Arcom IT

Hamlyns took the stress away by anticipating and understanding what I needed.

Managing Director, PromoLogistics Limited

Hamlyns gave me great advice and hand-holding to ensure my exit from the company was quick and clean. I am also thousands of pounds better off. Thank you, thank you.

Douglas Cooke
Former Director

Hamlyns treat me as an individual. I don’t feel like “just another client” to be processed.

Diana Boulter
MD, DBA Speakers

Chris and his team gave us precisely the advice our business needed, even before we knew we needed it!

Mike Higgins
Managing Director, Hawkmoor Limited

It’s great that I always get to speak to the same Partner who knows our situation, so I don’t need to keep repeating things.

Johnny Richards
Finance Director, Normandy Garage

When we came to Hamlyns, we were a start up business. In a few years, they’ve really helped us become a major player in our sector.

Frank Pawley MBE
Chairman, Global Travel Management Ltd

We have been working together for over 10 years and our relationship is vital to the success of our business; I would not hesitate to recommend them.

Angela Hall
Partner, Occupational Health Professionals LLP