AN MP is reminding employers in the Vale of Clwyd that they can claim under the UK Government’s Coronavirus Job Retention Scheme (CJRS) from today.
The scheme is open to applications from today (Monday, April 20).
Employers who cannot maintain their current workforce because their operations have been severely affected by Covid-19, can furlough employees and apply for a grant that covers 80 per cent of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay.
Dr James Davies, MP for Vale of Clwyd, said: “This scheme is designed to help employers whose operations have been severely affected by coronavirus (Covid-19) to retain their employees and protect the UK economy. However, all employers are eligible to claim under the scheme and the government recognises different businesses will face different impacts from coronavirus.
“Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.
“The way to make a claim is online- the service went live at 8am today and should be simple to use.
“There will be a calculator available allowing employers to check their calculations online before making a claim and employers should have all their information and calculations ready before beginning their application.
“Employers are being urged to use the online support at GOV.UK and to not contact HMRC unless it is absolutely necessary.”
The scheme has gone live 10 days ahead of schedule. A total of 5000 HMRC staff will operate the scheme – which is expected to help thousands of firms across the UK.
HMRC will check claims made through the scheme, and payments may be withheld or need to be repaid in full to HMRC if the claim is based on dishonest or inaccurate information or found to be fraudulent.
There is also other help for small and medium sized businesses and social enterprises in the Vale of Clwyd area.
Applications can now be made for support from the second phase of the Welsh Government’s £500 million Economic Resilience Fund.
The fund offers further financial support in dealing with coronavirus crisis and will be vital in helping organisations manage cash flow pressures. It has been designed to address gaps not currently met by schemes already announced by the UK government, Welsh Government and Development Bank of Wales.
This is a unique additional funding stream for Wales.
The Welsh Government revealed today (April 20) that it has released an additional £100 million business support after the Economic Resilience Fund saw an 'unprecedented rate of applications'.
More than 6,000 grant applications from small and medium sized businesses and social enterprises were received within 24 hours of the launch on Friday, April 17 – an unprecedented response, revealing the scale of the challenges facing Welsh businesses.
Ken Skates, minister for economy, transport and North Wales, said: "We knew that even with the help offered by initiative such as the Job Retention Scheme, there was a massive need for quick access to grant funding if Welsh businesses were to survive this unprecedented economic shock. Whilst in order to make the scheme quick and simple we needed to take tough decisions over eligibility – like requiring businesses to be registered for VAT as a way of having to check on their trading history - it is clear from the level of response received that the Economic Resilience Fund is plugging a gap in UK government support and providing much needed financial reassurance to many businesses at this challenging time. We will continue to review support and consider how we can develop it over the coming days.
"The rate of applications has been massive and unprecedented. This is the second time in a matter of weeks that access to Welsh Government funds aimed at easing cash flow pressures for Welsh business have quickly reached capacity, and we have responded with pace to release a further £100 million into this phase of the fund.
"In these difficult and demanding economic times we have worked hard to free up resources to create such a large fund despite the huge demands on our budget, and to strike a balance between supporting as many enterprises as possible and making a meaningful contribution to each one’s survival, as well as asking each recipient to sign up to the principles of the economic contract.
"Though we applaud much of what the UK government has done, there is an urgent need to see more of the promised lending guaranteed by the UK government getting to the front line. The UK government must continue to support and press the high street banks to be much more responsive to the needs of our businesses at this difficult time."
Ann Jones, AM for the Vale of Clwyd, said: “This is an unprecedented and alarming situation we are in and I believe this funding is essential to businesses, charities and social enterprises to see them through these very tough times."
HMRC has put in place an online portal for employees and the public to report suspected fraud in the Coronavirus Job Retention Scheme.
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