We thought we would give you an update on the most recent information regarding the Job Retention Scheme set up by the government due to the Coronavirus pandemic:
The scheme is due to go live online on 20 April 2020 with first payments being made 10 days later
Future claims will be paid within four to six days
Applicants will access the system using their current government gateway login for PAYE
Further guidance will be issued by HMRC week commencing 13 April explaining on how to use the system
Following the initial backdated claims, claims can be made no more than 14 days before payrolls are run but will be accepted for the different pay periods
Tax agents who are authorised to act for PAYE matters will be able to file claims on behalf of their clients, therefore we will be able to take care of this on your behalf.
What information is required to make claim:
Your PAYE reference number
The number of employees being furloughed
The claim period (start and end date)
Amount claimed (per the minimum length of furloughing of 3 weeks)
Your bank account number and sort code
Your contact name
Your phone number
Remember - both employee and employer must agree that they are putting the employee on furlough. Once agreed, the employer must write to employees confirming they are furloughed to be eligible to claim.
Employers do not need to put all employees on furlough, however those that are placed on furlough must not undertake any work for the employer.
Below is a recap of furlough rules and guidelines:
Furloughed employees will be paid 80% of usual wage subject to a £2500 cap per month
Salary sacrifice schemes should not reduced the salary claimed.
Any employer in the country, small or large, charitable or non-profit, will be eligible for the scheme.
You can designate employees as a furloughed worker if they are PAYE and were on your books on 28th February 2020
Claims can be backdated to 1st March
The scheme applies to all types of employee contract including full time, part time, zero hours and variable hours
Employees that have been furloughed have the same rights as they did previously. That includes Statutory Sick Pay entitlement, maternity rights, other parental rights, rights against unfair dismissal and to redundancy payments.
Once people recover after being on sick leave or in self-isolation, they can be furloughed
Anyone made redundant from 28th February 2020 can agree to be brought back and placed on furlough
Furlough must be for a minimum three weeks, but employees can be placed on furlough more than once
Wages must be paid to employees first and then reclaimed through an online portal
The scheme will be open for three months however this may be extended.
HMRC will pay you by BACS for the claim
Fees, commission and bonuses should not be included in the calculation of wages unless said payments are paid every pay period or guaranteed.
For employees whose pay varies, eg zero-hour or flexible contracts, the 80% limit will be applied to the higher of: - the same month’s earnings from the previous year; or - the average monthly earnings from the 2019-20 tax year; or - if they have been employed less than a year, an average of their monthly earnings since they started work (or pro-rata earnings if they only started work in February).
Associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage will also be covered.
If you have any questions regarding the scheme, please get in touch with us at solutions@apexpb.co.uk
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