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The Government’s 80% wage pledge



Icy Gull

Back on the rollercoaster
Jul 5, 2003
72,015
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....
 
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lawros left foot

Glory hunting since 1969
Jun 11, 2011
13,673
Worthing
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

Back on the rollercoaster
Jul 5, 2003
72,015
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
 






Goldstone1976

We Got Calde in!!
Helpful Moderator
NSC Patreon
Apr 30, 2013
13,765
Herts
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

Well-known member
Apr 30, 2011
10,719
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

Im The Scatman
NSC Patreon
Jul 16, 2003
57,845
hassocks
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

Well-known member
Jan 13, 2015
8,584
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

Back on the rollercoaster
Jul 5, 2003
72,015
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 :shrug:
 


Icy Gull

Back on the rollercoaster
Jul 5, 2003
72,015
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

We Got Calde in!!
Helpful Moderator
NSC Patreon
Apr 30, 2013
13,765
Herts
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 :shrug:

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

Well-known member
Jan 13, 2015
8,584
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
 






DJ NOBO

Well-known member
Jul 18, 2004
6,310
Wiltshire
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.
 
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Dick Swiveller

Well-known member
Sep 9, 2011
9,142
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

We Got Calde in!!
Helpful Moderator
NSC Patreon
Apr 30, 2013
13,765
Herts
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?
 
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Beach Hut

Brighton Bhuna Boy
Jul 5, 2003
71,903
Living In a Box
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

Well-known member
Sep 9, 2011
9,142
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

Brighton Bhuna Boy
Jul 5, 2003
71,903
Living In a Box
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.
 



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