What is the WEEKLY cap for Job Retention Scheme?

All the information I've seen covers a monthly salary cap of £2,500, but says nothing about wages!

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Normally, you'd expect a monthly salary cap of £2,500 to be £576:92 per week (£2,500 X 12/52), but in a tax month, when 5 payments are made, that's £2,884:60; £384:60 over the threshold! There appears to be no guidance on this, that I've searched, thus far. Accountingweb is just another 'port of call' in my searches.

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By ann domonkos
31st Mar 2020 15:58

I dont know the correct answer but i will have the same problem so i am going to annualised mine for the 4 weekly payrolls i have then convert them back when things revert to normal.

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By MJShone
31st Mar 2020 16:00

Good point. The "grant" is quite separate from the payroll.

We'll need to wait for more detail, but maybe it's a case of looking to see what you've paid someone in total in that particular tax month and then claiming the appropriate amount. So if you pay someone £725 a week, in some tax months you'll have paid them 4 times - £2,900 and the cap is £2,320 (80% of £2,900). In other months, you'll have paid them 5 times - £3,625 and the cap is £2,500.

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By fawltybasil2575
31st Mar 2020 18:25

@ rod boyers_1 (OP).

Your being unable to find any guidance on weekly pay is due simply to the fact that those who have written the guidance have assumed that all employees are paid MONTHLY.

Frankly, there are many gremlins in the current guidance (your query highlights just one of those gremlins)- hopefully they will be largely clarified in forthcoming days and then, more importantly, removed by the legislation, BEFORE it becomes an issue for you.

If in fact you are concerned about this week's payroll, then it is entirely safe for you to "adapt" all the monthly figures, including those in the current guidance for monthly-paid employees, to weekly figures (£x x 12 =£12x divided by 52).

Basil.

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