3rd April 2020
HMRC have recently announced that IR35 contractors (off payroll workers) who through their personal service companies work for a public sector body, will be eligible for the 80% salary payments under the employee Job Retention Scheme.
To be eligible the worker will need to show that they are unable to work due to the current crisis and that their contracts are ongoing. If the contract would have come to a natural end irrespective of the current crisis, the contractor will not qualify for the scheme payments.
This will enable locum medical staff and IT contractors working for organisations like the NHS to access financial support, if they have effectively been furloughed.
As mentioned in previous articles, the monthly furlough payment awarded will be the lower of:
It is worth noting, that as at this point of time , there is no indication this scheme will be extended to ‘off payroll workers’ in the private sector.
When any further information is made available we will let you know.
Please remember we are here to help as much as possible through these challenging times. We will continue to keep you updated as further announcements are made over the coming days.
Links to our other articles.
Coronavirus: Self-Assessment Payment Deferral and Job Retention Scheme payment to Directors
Coronavirus: The Coronavirus Job Retention Scheme – update
Coronavirus: Help for the self-employed – updated guidance
Coronavirus: Business update – Help for the self-employed
Coronavirus: Business update – The Coronavirus Job Retention Scheme
Coronavirus: Business update – Summary of all available support
Coronavirus: Business update – Latest announcements
Read our latest ‘Hot Topic’ COVID-19: measures for UK businesses
Coronavirus: Business update – Business Rates & IR35
Coronavirus: Latest measures to support UK businesses
Coronavirus – Update for Businesses
Useful links
