The Government’s 80% wage pledge

[Icy Gull]

Fantastic news and a job saver for millions. Is there any information as to whether tax and NI will be deducted from the 80% payout? Is the limit of £2500 relating to gross or net wages?

I would have added this question to another thread but there doesn’t seem to be a relevant one that I can see.

As an aside, is this likely to save your job?

Re self employed. I guess any payouts will be calculated on the tax returns made. I know quite a few self employed people who do not declare anywhere near what they actually earn....

 

[Hampster Gull]

Very impressive, but they’ll need to do much more, zero hours, rent demands etc

 

[lawros left foot]

Fantastic news and a job saver for millions. Is there any information as to whether tax and NI will be deducted from the 80% payout? Is the limit of £2500 relating to gross or net wages?

I would have added this question to another thread but there doesn’t seem to be a relevant one that I can see.

As an aside, is this likely to save your job?

Re self employed. I guess any payouts will be calculated on the tax returns made. I know quite a few self employed people who do not declare anywhere near what they actually earn....

I don’t think it’s for the self employed anyway. The Government will have to sort something out for them(us) as well.
The 10 grand grant will help enormously with rent for my business etc, but, what am I meant to live on?

 

[Icy Gull]

I don’t think it’s for the self employed anyway. The Government will have to sort something out for them(us) as well.
The 10 grand grant will help enormously with rent for my business etc, but, what am I meant to live on?

Sorry I wasn’t clear I was thinking more along the lines of WHEN a package for the self employed is announced. Can’t believe that you won’t get one in the near future

 

[Norman Potting]

Strange times, and hope that it helps many NSC'ers. Bizarrely we could end up with the most "socialist" government in memory.

 

[Goldstone1976]

Fantastic news and a job saver for millions. Is there any information as to whether tax and NI will be deducted from the 80% payout? Is the limit of £2500 relating to gross or net wages?

I would have added this question to another thread but there doesn’t seem to be a relevant one that I can see.

As an aside, is this likely to save your job?

Re self employed. I guess any payouts will be calculated on the tax returns made. I know quite a few self employed people who do not declare anywhere near what they actually earn....

Best place for info, IMO: https://www.gov.uk/government/publi...-through-the-coronavirus-job-retention-scheme

Details are sketchy so far, but I’d be confident that the £2.5k refers to gross pay. The Chancellor referred to “just above median pay” - that’s gross.

Just about all of my employees are paid well in excess of £2.5k/month, so the benefit to us will be substantially lower than 80% (maybe 25%), but it’ll be a big help. Of course, it’s only payable if the staff member(s) don’t work (how will the Govt know??).

Providing CBILS is easy enough to access, and providing it’s not like trying to find loo roll (demand swamping supply, leading to massive delays) - this will be a more important factor in cash flow mgt for us.

The intentions are exceptional - whether they actually work will depend, as ever, on execution.

 

[Pogue Mahone]

Sorry I wasn’t clear I was thinking more along the lines of WHEN a package for the self employed is announced. Can’t believe that you won’t get one in the near future

I bloody hope so.

As a supply teacher, I work full time on a zero hours contract. With the schools closure yesterday I now have no income for the forseeable future.

I an somewhat concerned...

 

[Kinky Gerbil]

Things have certainly become more interesting for my work place

A lot of staff took redundancy because it was a better option than take a pay cut/unpaid leave/company loan for x amount of months.

They technically haven’t left let.... so all are
Saying they want to now stay.

 

[NooBHA]

It's going to be Gross but there is a postponement in the collection and paying over the tax and NIC for 3 months. Possibly to even further

 

[Icy Gull]

Best place for info, IMO: https://www.gov.uk/government/publi...-through-the-coronavirus-job-retention-scheme

Details are sketchy so far, but I’d be confident that the £2.5k refers to gross pay. The Chancellor referred to “just above median pay” - that’s gross.

Just about all of my employees are paid well in excess of £2.5k/month, so the benefit to us will be substantially lower than 80% (maybe 25%), but it’ll be a big help. Of course, it’s only payable if the staff member(s) don’t work (how will the Govt know??).

Providing CBILS is easy enough to access, and providing it’s not like trying to find loo roll (demand swamping supply, leading to massive delays) - this will be a more important factor in cash flow mgt for us.

The intentions are exceptional - whether they actually work will depend, as ever, on execution.

Proving you’re not working is very easy in the travel business, absolutely feck all to sell and 95% of our customers who were abroad are now back. We may not be closed as we can all work from home but as we are not making any bookings we are basically fecked for a long time

 

[Icy Gull]

It's going to be Gross but there is a postponement in the collection and paying over the tax and NIC for 3 months. Possibly to even further

So we will be paying staff up to £2500 but holding onto the tax and NI. I wonder if the pension companies that we and the staff pay into will allow a payments holiday on paying in. Have to check this out on Monday I guess. We use Now Pensions.

 

[Goldstone1976]

Proving you’re not working is very easy in the travel business, absolutely feck all to sell and 95% of our customers who were abroad are now back. We may not be closed as we can all work from home but as we are not making any bookings we are basically fecked for a long time

Absolutely - in your industry. For many others, not so easy for the Govt to check whether a staff member is actually “furloughed” or not. I’m a bit concerned that some less ethical businesses will claim this cash even though the staff member(s) is/are still working. Even harder for the Govt to check if the employee(s) are already WFH...

Like stockpiling, there will be businesses who abuse the system, I fear.

 

[NooBHA]

So we will be paying staff up to £2500 but holding onto the tax and NI. I wonder if the pension companies that we and the staff pay into will allow a payments holiday on paying in. Have to check this out on Monday I guess. We use Now Pensions.

I produced a recommendation document to suggest that pension contributions break be the first thing suspended. I haven't seen that yet but it might be part of these measures because I haven't read the full information produced yet.

There is so much information coming out I just had time to skim read some of it

 

[Is it PotG?]

Like stockpiling, there will be businesses who abuse the system, I fear.

Alas, I think you will be correct here.

We were discussing (at safe distance) this last evening. As admirable and well intentioned this may be, there are certain to be some in the minority who see this gesture as a way to make a few quid.

 

[DJ NOBO]

Best place for info, IMO: https://www.gov.uk/government/publi...-through-the-coronavirus-job-retention-scheme

Details are sketchy so far, but I’d be confident that the £2.5k refers to gross pay. The Chancellor referred to “just above median pay” - that’s gross.

Just about all of my employees are paid well in excess of £2.5k/month, so the benefit to us will be substantially lower than 80% (maybe 25%), but it’ll be a big help. Of course, it’s only payable if the staff member(s) don’t work (how will the Govt know??).

Providing CBILS is easy enough to access, and providing it’s not like trying to find loo roll (demand swamping supply, leading to massive delays) - this will be a more important factor in cash flow mgt for us.

The intentions are exceptional - whether they actually work will depend, as ever, on execution.

This scheme could be a lifeline for low earners and struggling families. Which is great.

I just hope that high earners cannot take advantage of the tax payer and claim some pocket money to top up their savings.

If your colleagues earn 10k a month , they should do the right thing and not claim this new allowance. Or pass it straight on to those who need it most. Which is definitely not them.

 

[Dick Swiveller]

Waiting for details to hear if it applies to me - should do as they specifically closed leisure centres. Our MD is as much in the dark as everyone else so wait and see, I suppose.

 

[Goldstone1976]

This scheme could be a lifeline for low earners and struggling families. Which is great.

I just hope that high earners cannot take advantage of the tax payer and claim some pocket money to top up their savings.

If your colleagues earn 10k a month , they should do the right thing and not claim this new allowance. Or pass it straight on to those who need it most. Which is definitely not them.

The payment is made to the business, not the employee. The employee remains on payroll (rather than being made redundant), and the employer claims back from HMRC up to £2.5k/mth.

I do agree that its main benefit is for low-medium paid employees, rather than high earners. However, the scheme will probably allow me to keep employed (but temporarily not working) 4-6 employees. Should I make them redundant instead?

 

[Beach Hut]

Waiting for details to hear if it applies to me - should do as they specifically closed leisure centres. Our MD is as much in the dark as everyone else so wait and see, I suppose.

I am sure the Government will make good on this, bear in mind it was only announced yesterday so it will take time to be implemented. There were discussions with business leaders and Union Leaders which, in my view, is very good news as there is a realisation people need help.

 

[Dick Swiveller]

I am sure the Government will make good on this, bear in mind it was only announced yesterday so it will take time to be implemented. There were discussions with business leaders and Union Leaders which, in my view, is very good news as there is a realisation people need help.

It could well save the business as people were cancelling left, right and centre and attendance was about an eighth of what it would normally be. Hopefully the company has enough to keep other bills at bay as people will need council sports facilities when this is over.

 

[Beach Hut]

It could well save the business as people were cancelling left, right and centre and attendance was about an eighth of what it would normally be. Hopefully the company has enough to keep other bills at bay as people will need council sports facilities when this is over.

All businesses will still be needed post this virus issue hence why they are also offering VAT and rate holidays as well as wages assistance. If they didn't then very quickly the country would be out of control hence the reason for doing this.

Ultimately there is a price to pay however now is not the time for discussing that now is the time to react with assistance packages which is what is happening.