Coronavirus Job Retention Scheme: a cash grant that is designed to allow employers to retain staff who would otherwise be laid off.

At a glance

At a glance

  • Employers may claim a grant of up to 80% of the salaries of employees, subject to a cap of £2,500 per month, instead of making them redundant, due to the adverse effects of the coronavirus. 
  • The scheme initially ran for four months starting from 1 March 2020. On 12 May it was extended to the end of October.
  • Only employees on the PAYE payroll as at 19 March 2020 and for whom a payment was notified to HMRC on a Real-Time Information (RTI) submission on or before 19 March, (prior to 15/04/2020 this date was 28 February 2020), can be furloughed.
  • Employers must designate affected employees as ‘furloughed workers' and notify the employees of this change. 
  • Workers cannot undertake work while furloughed, they may undertake training.
  • Each furlough period must last for at least three consecutive weeks.

 How to claim

  • Employers submit information to HMRC about the employees that have been furloughed and their earnings through an online portal.
  • The portal went live on 20 April.
  • Claims can be made every three weeks with payments expected within six working days of making a claim.
  • HMRC has created a step by step guide to making claims.

UPDATE 27 May 2020: Record Keeping and TUPE, see headings below.

UPDATE 12 May 2020: Extension of scheme and proposed relaxation of rules

  • The scheme is to be extended by a further four months to the end of October 2020.
  • A relaxation in the rules is planned from 1 August to allow furloughed workers to work part-time. From this date also the employer will need to make a contribution towards furloughed workers' wage costs. More details are expected on this by the end of May. The scheme will continue in its current form until the end of July.

UPDATE 5 May 2020: Incorrect refusal of Job Retention Scheme financial support

  • HMRC says that some employers have incorrectly had their Job Retention Scheme (JRS) claim for financial support refused because they are in arrears with some of their tax liabilities. It confirms that this was incorrect, claims should not have been rejected.
  • Employers who have had their claim rejected to re-apply and apologises for the distress this may have caused.
  • See ICAEW HMRC refusal of JRS applications

Overview and examples

What does the government mean by furloughing 

  • 'Furloughing' is an alternative to laying people off.
  • Employees are kept on the payroll instead of dismissing them as redundant or laying them off without pay.
  • It is relevant for employees who are not off sick or claiming other statutory employment benefits. Sick workers are instead eligible for government support under the Statutory Sick Pay (SSP) rules.

Who can be furloughed?

  • Any employee, apprentice, agency worker, salaried member of an LLP, or director or other office-holder.
  • Full time, part-time or casual or zero-hours workers.
  • Employees on fixed-term contracts if the contract was in place on or before 19 March 2020 and it has not ended, regardless of how long is left to run on the contract.
  • They must have been on your payroll on 19 March 2020 (prior to 15/04/2020 this date was 28 February 2020).

Can your employee work for you when furloughed?

  • No. They cannot be 'providing services or generating revenue'.
  • They may undertake job-related training.  
  • Employers are free to consider allocating any critical business tasks to staff that are not furloughed.
  • Furloughed staff must not work for any company or organisation linked or associated with the employer.
  • The exception to this is union representatives who may undertake duties and activities for the purposes of individual or collective representation of employees or other workers, as long as they do not provide services to, or generate revenue for, the employer organisation or a linked or associated organisation.

HMRC's guidance is slightly muddled in terms of what kind of entity can be linked or associated. 

We assume that the latter applies, as not all employers are companies and so it is odd to limit the rule to just companies. We have requested clarification from HMRC. 

How does it work and how much can be claimed?

There is a minimum furlough period of three consecutive weeks. Employees can be taken in and out of furlough, when this happens the three week minimum period applies to each separate instance of furloughing.

HMRC will reimburse:

  • Up to 80% of the wage costs of furloughed employees, subject to a cap of £2,500 per month (£576.92 per week) per employee. 
  • Plus, Employer National Insurance Contributions (NICs) paid on the furloughed wage and minimum automatic enrolment employer pension contributions due on that sum. If the Employment Allowance is being claimed this must be deducted from the Employer NIC's being claimed.
  • If the furlough period is not a complete week or month you will need to calculate the maximum amount on a daily basis. The maximum daily amounts are:

March 2020 

£80.65 per day

April 2020

£83.34 per day

May 2020

£80.65 per day

June 2020

£83.34

 

What are wages?

Wages are your monthly earnings:

  • If wages are of a fixed annual amount this is the amount paid in the last pay period prior to 19 March 2020 (prior to 15/04/2020 this was in the month to 29 February). 
  • HMRC say that if, based on previous guidance, the employer has calculated a claim based on the employee’s salary as at 28 February 2020 (and this differs from their salary in their last pay period prior to 19 March 2020) the employer can choose to still use this calculation for the first claim.

If your employee's salary varies:

  • If they have been employed for a full year or more prior to the claim, you can claim the higher of:
    • their earnings for the same month in the previous year and
    • their average monthly earnings for 2019/20 tax year.
  • If they have been employed by you for less than a year, take their average monthly earnings since they started working for you.

Update: 4/4/2020

  • The grant paid to your employer will be calculated based on your regular, contractual pay, such as wages, compulsory commission and past overtime.
  • The calculation will not include discretionary commission (including tips) payments or bonuses, non-cash payments or benefits in kind.

What about overtime?

It is paid. We queried this on 3 April 2020 and HMRC have been quick to update their guidance.

  • The grant paid by your employer is based on regular contractual pay including past overtime.

Practically speaking, this means that the amount paid is based on your contractual earnings as paid in February 2020, or if the calculation is based on variable pay, the mechanism will be the average of contractual earnings for 2019/20 paid up to 28 February 2020. It will not include discretionary amounts paid.

What about the National Minimum Wage (NMW)?

The NMW increased on 6 April 2020.

Apprentices must be paid at least the Apprenticeship Minimum Wage/National Living Wage (NLW)/NMW. The employer must top-up any shortfall between the amount it can claim for an apprentice's wages through the furlough scheme and their appropriate minimum wage.

Other employees are subject to different rules: no one is working during the time that they are furloughed. If they are paid 80% of their usual pay, this may well take them below the NLW/NMW and that is accepted. If they are undertaking training in that period, they must be paid the NLW/NMW for the training period and the employer must top-up any shortfall.

What about holiday pay and bank holidays?

Your employees can still take a holiday while they are furloughed. Under the Working Time Regulations (WTR), holiday pay must be paid at the employee’s normal rate of pay or, if this varies, it must be based on the average pay the employee has received in the previous 52 working weeks. This means that if a furloughed employee takes holiday, the employer will have to pay additional amounts over the grant in order to meet the requirements of the WTR.

Where an employee usually works bank holidays the employer can agree this is included in the grant payment. If the employee usually takes the bank holiday as leave, the employer will either have to top up their holiday pay or give them a day of holiday in lieu. Since April and May include four bank holidays employers will need to consider how they are going to deal with this.

What about directors and annual salaries? 

HMRC have now included this in their guidance. Directors and any other employees paid annually are eligible to claim, provided they meet the qualifying conditions, which include:

  • Being notified to HMRC on an RTI submission on or before 19 March 2020 and
  • The notification is for a payment of earnings in the 2019/20 tax year.

Directors who are paid annually just in March/start of April will not be eligible:

  • Their last payment notified under RTI (assuming that an annual payroll was run in the previous tax year) was before 5 April 2019, and no further payments were then notified until after 19 March 2020.
  • They will not have a payment of earnings for 2019/20 returned under RTI before 19 March 2020 as the pre 5 April 2019 payment will have been in respect of 2018/19.

Conversely, a director who was paid an annual salary in say February 2020, would be eligible for the grant as they would have been notified to HMRC on an RTI submission on or before 19 March 2020 for a payment of earnings in the 2019/20 tax year.

The HMRC online claims calculator should not be used for directors and those who are paid annually. Manual calculations must be performed instead.

Transfer of Undertakings (Protection of Employment) Regulations (TUPE)

  • When a payroll has been transferred as part of a business transfer, the new employer can claim a CJRS grant where an RTI submission has been made on, or before, 19 March 2020 for employees who were employed by the former employer in a qualifying PAYE scheme on 28 February 2020.
  • See Treasury Direction 22/5/2020.

How to claim

  • Valid claims can be made using HMRC's employer claim online portal.
  • Claims should be made in accordance with actual payroll amounts at the point at which you run your payroll or in advance of an imminent payroll. You should pay your furloughed employees through the payroll under Real-Time Information (RTI) as normal but at the 80% adjusted amount unless you have agreed to top up their pay (see below).
  • The measure initially applief for four months from 1 March 2020 (extended from 3 months on 17/04/2020). It was further extended on 12/5/2020 to 31 October but with changes from 1 August. More detail on the changes is expected by the end of May.
  • Claims can be made every three weeks.
  • Payment is by a grant provided by HMRC to be paid by BACS directly into a UK bank account.

What to pay?

As an employer you may need to renegotiate the employee's contract. The need to do this may well reflect your financial circumstances.

  • It is up to you whether you pay the 20% difference so that your employees receive their full pay.
  • Higher earners may be adversely affected.
  • The amount paid to a worker when furloughed is a decision for you as an employer and may be a matter of negotiation with your employees.

You must pay the employee all the grant received for their gross pay, no fees can be deducted from the grant money.

The employees you furlough must not work for you during the furlough period.

  • They remain your employees.
  • They may undertake training during their furlough period.
  • It is not clear whether they are allowed to take temporary work elsewhere during the furlough period, but it may be that their employment contract currently forbids it. See below for how you might wish to deal with this.

Do not forget about employment law. This is for your protection as an employer (against claims by employees once this is all over) as well as the protection of your employees.

*We are unable to give employment law advice but have included some suggestions below which should help manage your risk here. If in doubt you must seek independent legal advice.

What period is covered by the job retention grant claim?

  • Grant claims can be backdated to 1 March 2020, only in cases where an employee was laid off from that date, and where the employer subsequently decided to furlough that employee.
    • Employees who were made redundant on or after 28 February 2020 can be re-employed and furloughed even if they are not re-employed until after 19 March.
  • The job retention grant cannot be claimed for anyone who is still working: it may only be paid once the job has ceased due to the COVID-19 crisis.
  • In many cases furloughing commenced only on the day that the employer was affected by the COVID-19 lockdown.

These examples illustrate how we think the grant will work for many businesses: 

Example 1: Corona Travel Ltd is a specialist tour operator sending UK tourists to remote parts of China. When Wuhan Province announces a lockdown in February 2020, the company decides to cancels all its spring and early summer tours. All staff are laid off at the end of February except the director. When the UK announces its employee job retention scheme in late March 2020, the company contacts staff and advises them that they will be re-employed and furloughed. As the staff were all laid off before 1 March the company's furloughing claim in respect of the furloughed staff can be backdated to 1 March as none of these employees worked in March. 

Example 2: Corona Gelatos Ltd employs 15 employees, 12 who work in sales and the production line and delivery. The UK went into COVID-19 lockdown on 23 March and all the company's retail customers shut down their gelato parlours. The company decides to cease all production and lay off and furlough all sales, production and delivery staff from 24 March. Staff are paid their normal salary up to 23 March and the furloughed staff are paid their salary as negotiated with the company for the period they are furloughed from 24 March onward.

What is required to make a claim

The online portal for making claims became available on 20 April.

Claims can be made every three weeks. Payment will be made within six working days. HMRC say you should only contact them about your claim if you have not received payment within 10 working days.

To make a claim you will need the following information:

  • Employer PAYE reference number.
  • The number of employees being furloughed.
  • Names and National Insurance Numbers for the furloughed employees (payroll/works numbers are optional)
  • Your Self Assessment Unique Taxpayer Reference (UTR) or Corporation Tax Unique Taxpayer Reference or Company Registration Number (CRN).
  • The claim period (start and end date, the start date cannot be before 1 March 2020).
  • Amount claimed (the minimum length of furloughing is three weeks).
  • Your bank account number and sort code.
  • Your contact details.

Currently, no claims can be made using the online portal for any furloughed employees without NI numbers. Where an employer has furloughed employees without NI numbers:

  • If they have less than 100 furloughed employees they should call the COVID-19 helpline on 0800 024 1222 to make their claim.
  • If they have 100 or more furloughed employees, they should provide a payroll or employee reference number for those employees without NI numbers.

Where the employer does not have a UTR or CRN they should answer ‘No’ to the questions:

  • Does the employer submit a company tax return?
  • Is the employer registered for self-assessment?
  • Is the employer registered at companies house?

They will then be asked ‘What is the name of the employer?’ and the claim can proceed.

Prior to 7 May the claim had to be made in one session, you could not save it and go back to it. From 7 May claims can be saved so you can go back and finish them later. You should print or print to pdf once you have finished completing the claim so that you have a copy for your records. Once you have submitted the claim you will get a confirmation screen with a reference number. No email confirmation will be provided so you should print or note down the reference number.

You must calculate the amount to claim, HMRC will not do it for you. HMRC have provided an online calculator but this cannot be used in some circumstances including for directors and those who are paid annually. You should keep a full record of your calculations. Care should be taken with calculations as claims cannot be amended once made.

  • If you have less than 100 furloughed staff you will be asked to enter details of each employee you are claiming for directly into the system.
  • If you have 100 or more furloughed staff you will be asked to upload a file with the information rather than input it directly into the system. HMRC will accept the following file types: .xls .xlsx .csv .ods
  • You should retain all records and calculations in respect of your claims.
  • If you use an agent who is authorised to act for you for PAYE purposes, they will be able to make a claim on your behalf. You will need to tell them which bank account you would like the grant to be paid into.
  • If you use a file only agent who does not act for you on any other matters they will not be authorised to make a claim and you will need to do it yourself.

Record keeping

HMRC have said that they will retain the right to retrospectively audit all aspects of your claims and payments may be withheld or have to be fully repaid if HMRC find that they are based on dishonest or inaccurate information or if they are fraudulent. 

A Treasury Direction issued on 22 May 2020 makes it clear that the written agreement for the employee to cease all work has to be retained by the employer until at least 30 June 2025 and must:

  • specify the main terms and conditions,
  • be incorporated (expressly or impliedly) in the employee’s contract, and
  • is made or confirmed in writing.

Tax Treatment of the Job Retention Grant

  • Payments received under the scheme must be included as income in the business’s calculation of its taxable profits for Income Tax and Corporation Tax purposes, in accordance with normal principles.
  • Employment costs may be deducted as normal when calculating taxable profits.

VAT implications Added 19/5

HMRC have not provided any guidance as to whether the grants under the CJRS will be subject to VAT or count towards turnover for VAT registration limits. Normal principles are expected to apply meaning:

  • The grants would be outside the scope of VAT and no output VAT should have to be accounted for.
  • The grant income should be disregarded for VAT registration and deregistration limits.

Steps to take when furloughing workers

  • Decide which employees are to be furloughed and designate them as such. If this is not all your employees, you should ensure you use a fair selection process*:
    • You could start with any employees who cannot work from home, if this is appropriate, or those who need to stay home to look after children.
    • Ask for volunteers.
    • You could adopt the same sort of process you would if making people redundant, using pooling and selection criteria.
  • Decide whether you will top up the amount being reimbursed by HMRC and if so by how much.
  • Decide whether you are furloughing employees for a fixed period e.g. the full four months or whether you need to keep it flexible. This means less certainty for everyone but allows you to call employees back if the situation changes and restrictions on working are lifted. There is a minimum furlough period of three consecutive weeks and this applies to each instance so if you move someone in and out of furlough each furlough period must be at least three weeks long. You cannot extend a furlough period once it has ended but you can immediately start a new period.
  • Decide whether you would agree to employees taking temporary work elsewhere during the furlough period. You may wish to only address this if asked by your employees.*
    • If their contract currently forbids this, you should advise them of your decision in writing.
    • If the contract does not forbid this it would seem, unless the government advises otherwise, that employees are free to do this.
  • Monitor your cash flow position to see if you have sufficient funds to pay your employees until the HMRC grant comes in, likely to be sometime before the end of April. If you do not, you may wish to consider a business interruption loan or deferring your VAT payment.
  • Check the employment contract for each employee you intend to furlough.
    • If you intend to top up their payments to maintain their normal pay you should not need the employees’ consent as you are not deviating from their contractual terms.
    • If you do not intend to top up their payments then you will need the employees’ consent unless their contract allows for you to reduce or stop their pay when there is no work for them to do. If in doubt you may wish to take legal advice.
  • Notify the designated employees in writing that they are furloughed. Tell them whether you are topping up their wages or whether they will just get the 80% amount reimbursed by HMRC/£2,500 per month, whichever applies.
  • If required (see above) obtain consent from the employees, in writing, to be furloughed.
  • If you do have sufficient funds, make payments to your furloughed workers accordingly.
    • This should go through the payroll as normal with tax. Employee NICs should be deducted as normal. HMRC confirmed this on Twitter on 25 March 2020 and again in their guidance of 26 March 2020. 
  • It is not yet clear how the grant will work for employers who are unable to pay their furloughed workers until the grant comes in and whether they can delay wages payments until HMRC pay them.
  • Submit information to HMRC about the employees that have been furloughed and their earnings through the new online portal available from 20 April 2020.

We assume that once information has been submitted you will receive your grant from HMRC. HMRC have said that payment should be made within 6 working days.

Directors of small companies

COVID-19: Company Directors & Shareholders: many small companies are run by just one or two directors and have no other employees.

What government financial support is available to director/shareholders during the Coronavirus crisis?

The government has confirmed our views on this:

  • A director or company officer is an employee for PAYE purposes.
  • A director cannot claim the COVID-19 Grant for the Self-Employed by virtue of holding the office of a director.
  • A company may furlough a director under the government's Coronavirus Job Retention Scheme.
  • For small companies: at least one director must stay on to perform their statutory duties of office. They may be furloughed in respect of their normal employment duties (if applicable).

See COVID-19: Company Directors & Shareholders

Furlough v Redundancy?

What is the best course of action for an employer in dealing with staffing during the COVID-19 emergency?

If you want to retain your staff but cannot afford to pay them you can:

  • Furlough them.
  • Make them redundant and hope that they will be available if your business starts up again.

Furloughing as an option

Do you wish to retain your employee?

Yes

Is your business, due to the effects of COVID-19:

  • Temporarily closed or shutting down by government restriction.
  • Unable to provide a safe workplace for your employees or safe travel to and from work.
  • Unable to offer home-working for employees.

In other words, is it impossible for the employee to work for you at present or there is no other paid work currently available for them to do?

Yes

Are they employed by you under an employment contract i.e. a written or verbal contract?

Yes

Are they paid a regular wage in return for working regular hours?

Yes

You can furlough them, by keeping them on the payroll.

Casual workers

Is your worker casual or subject to a zero-hours contract?

Yes

Does your business have any ongoing obligation to offer them work?

No

Does the worker only work when they want to?

Yes, or generally they accept work when its offered.

You do not need to furlough them as you already have no obligation to provide work. You may want to use the furloughing process as a way of ensuring their future their loyalty. *

*More information is awaited from the government as it is unclear what rights casual workers have in this instance.

Redundancy

Employees

  • Employees will be entitled to statutory redundancy pay if they have been employed for two years or more.
  • Redundancy measures may also be dealt with by their employment contract.

Short-term and temporary lay-offs

You can claim statutory redundancy pay if you’re eligible and you’ve been temporarily laid off (without pay or less than half a week’s pay) for either:

  • More than four weeks in a row.
  • More than six non-consecutive weeks in a 13 week period.

Write to your employer telling them you intend to claim statutory redundancy pay. This must be done within four weeks of your last non-working day in the four or six week period.

See HMRC Redundancy Pay Your Rights

Casual workers 

Workers are not normally entitled to:

  • Statutory Redundancy pay or minimum notice periods if their employment ends.

See HMRC Employment Status Guidance for Workers 

 

Letter to employee

Instructions: you can use this as a template, cut and paste the text on to your own letterhead. There are Notes for completion below.

Letter start:

[Employer name if not on headed paper]

[Employer address]

[Date]

Dear [Employee name]

Due to the ongoing COVID-19 (Coronavirus) pandemic, we have identified you as a suitable employee [to be furloughed/agreed with you that you will be furloughed]* under the government's Coronavirus Job Retention scheme.

What this means is that you will not be required to work until further notice but will continue to be paid [as normal/and will receive 80% of your normal pay/you will receive pay of £2,500** per month.]*

Income tax and national insurance will be deducted from your pay as normal.

You will continue to be our employee during the furloughed period, however, you must not undertake any work for us during this period.

Your furlough period starts on [insert start date – this cannot be before 1 March 2020]. It will end on the earlier of:

  • The date we request you to return to work.
  • 30 June 2020 unless this date is extended by the government. We will notify you if this is the case.

We expect the period not to exceed four months. This may be extended if government restrictions mean that it is not possible for you to return to work. The government has set the minimum furlough period at three weeks.

[As already discussed we agree that you may other undertake paid temporary work/and unpaid voluntary work during your furloughed period]*

We will contact you when you are required to return to work.

[Please sign the attached form to confirm your agreement to being a furloughed employee and return to [name of appropriate person/address or email address] by [date]***.

Yours sincerely

[your name]

Letter end

 

Notes for completion - DELETE BEFORE SENDING

*Delete as appropriate.

 **Only use the £2,500 per month option where employee earnings are such that 80% of their normal gross pay is more than £2,500 per month. For example, someone earning £3,500 per month would be due £2,800 at 80% but this is reduced by the cap to £2,500.

You will not need your employee’s agreement to the furlough if:

  • They will continue to receive their full pay.
  • Their contract allows you to reduce their pay if there is no work for them.

***It is recommended that you set a deadline for responses.

 

Employee response form

A form for a furloughed employee to return to the employer

 

I [Employee name and works/employee number (if they have one)] consent to being a furloughed employee until such time as I am asked to return to work.

I understand that I remain an employee of [insert name of employer] and must continue to adhere to the terms of my employment other than by prior agreement with my employer.

……………………………………………

PRINT NAME

…………………………………………….

SIGN HERE

………………………………………………

DATE

Updates

12/05 On extension to scheme and proposed relaxation on 'no working requirement.'

05/05 FAQ on annual payroll, links to HMRC's claims portal in How to Claim, HMRC note on incorrect refusal of claims.

 

Comments (137)

Rated 4 out of 5 based on 1 voters
This comment was minimized by the moderator on the site

I am the sole director of a limited company and manage my own RTI payroll submissions. During tax year 2019/20 I made 11 monthly FPS/EPS submissions (April 2019 - Feb 2020) with pay set at £0. I then made a final submission for the year on March...

I am the sole director of a limited company and manage my own RTI payroll submissions. During tax year 2019/20 I made 11 monthly FPS/EPS submissions (April 2019 - Feb 2020) with pay set at £0. I then made a final submission for the year on March 31st 2020 with pay set at £8632 (i.e. annual salary for the year). My assumption is that since I was on the company payroll before March 19th 2020 I would be entitled to make a claim - could you advise? Many thanks

Read More
Guest
This comment was minimized by the moderator on the site

Company has furloughed staff as business is closed. A fire now means the business cannot open, is the employer still able to furlough staff, or will they have to be made redundant?

Guest
This comment was minimized by the moderator on the site

If the business is going to close then you cannot claim to furlough anyone once closed.

Guest
This comment was minimized by the moderator on the site

A result of a webchat with HMRC has confirmed that the business is allowed to continue to furlough staff while it looks for alternative premises. The earlier closure for Covid 19, surpasses the effects of the fire apparently. The proviso being...

A result of a webchat with HMRC has confirmed that the business is allowed to continue to furlough staff while it looks for alternative premises. The earlier closure for Covid 19, surpasses the effects of the fire apparently. The proviso being that the business can find alternative premises in a reasonably short time frame, and the business will continue trade.
Thought this information might prove useful to other subscribers.

Read More
Guest
This comment was minimized by the moderator on the site

So my partners employer is paying 80% of his basic pay. Now his basic pay is a huge drop to what he usually earns due to overtime and bonus. I keep reading and re reading everything and everything suggests they should be paying him 80% of what he...

So my partners employer is paying 80% of his basic pay. Now his basic pay is a huge drop to what he usually earns due to overtime and bonus. I keep reading and re reading everything and everything suggests they should be paying him 80% of what he earns on average not basic. I know bonus is taken off which is fair enough but surely should be average hours not basic?

Read More
Guest
This comment was minimized by the moderator on the site

He needs to talk to his employer, the agreement is between employer and employee.

Guest
This comment was minimized by the moderator on the site

My employer has told me they have claimed for the furlough wages 6 weeks ago when the government first opened claims, for me and 4 other employees. We under stand that they don’t have the money to pay our wages until they receive the furlough...

My employer has told me they have claimed for the furlough wages 6 weeks ago when the government first opened claims, for me and 4 other employees. We under stand that they don’t have the money to pay our wages until they receive the furlough pay. They told us they claimed for it 6 weeks ago, however they are apparently still waiting for the furlough payment. Non of us have had any income since the lockdown started, they have asked us to now start return which is fine, however Is there a way we can find out if they have received the furlough money We are owed from Hmrc and are withholding it or if they are telling the truth?

Read More
Guest
This comment was minimized by the moderator on the site

You need to keep pressing your employer. HMRC has been pretty swift at paying out under the scheme, and so if a claim has been made correctly no delay should be expected. HMRC does have a fraud line and so if you suspect anything suspicious you...

You need to keep pressing your employer. HMRC has been pretty swift at paying out under the scheme, and so if a claim has been made correctly no delay should be expected. HMRC does have a fraud line and so if you suspect anything suspicious you can report your employer.

Read More
Guest
This comment was minimized by the moderator on the site

We have a contractor who is a director of a limited company - he has not done any work since the start of lockdown. His CIS sub-contractors however have been working. Can he furlough himself under the rules of that he has not been working, even...

We have a contractor who is a director of a limited company - he has not done any work since the start of lockdown. His CIS sub-contractors however have been working. Can he furlough himself under the rules of that he has not been working, even though he has subcontractors doing work through his CIS?

Read More
Guest
This comment was minimized by the moderator on the site

If he has not been working he can furlough himself. It depends on his role.

Guest
This comment was minimized by the moderator on the site

Hello, can you point us in the right direction please?

Sole director of limited company, paid via PAYE only and no other employees. Not able to have employment allowance for employers NI due to being sole employee as a director.

Have been...

Hello, can you point us in the right direction please?

Sole director of limited company, paid via PAYE only and no other employees. Not able to have employment allowance for employers NI due to being sole employee as a director.

Have been advised to furlough and have used the HMRC calculator to calculate the amounts but it then details the amount to claim back in Employers NIC contributions as part of that claim, howev3er should we not be claiming this as we are not normally entitled to an employers allowance for NI due to being the only employee as a director, or does it not apply in the case of furlough and we can claim the 80% of the salary and the ER's contributions?

Have trawled HMRC and other resources but cannot find the answer.

Thanks so much

Read More
Guest
This comment was minimized by the moderator on the site

The employment allowance is separate to the CJRS, it is only relevant if you are claiming it as in that case you can't claim employers NIC under the CJRS as you haven't paid any. So if you meet the requirements to furlough yourself then your...

The employment allowance is separate to the CJRS, it is only relevant if you are claiming it as in that case you can't claim employers NIC under the CJRS as you haven't paid any. So if you meet the requirements to furlough yourself then your claim can include ER's NIC.

Read More
Guest
This comment was minimized by the moderator on the site

Hello

Can you advise or help please?

Sole director of a limited company (no other PAYE employees) director paid fully by PAYE.

Have been advised to furlough due to no work and the HMRC calculator details the amount to claim in employers...

Hello

Can you advise or help please?

Sole director of a limited company (no other PAYE employees) director paid fully by PAYE.

Have been advised to furlough due to no work and the HMRC calculator details the amount to claim in employers NIC contributions, however, as a single director, I believe that there is no employment allowance on normal PAYE due to A company not being eligible if there is only one employee (or director) in the limited company is paid above the Secondary Threshold. Which applies, so does this mean that we should ignore the employers NIC contribution on the HMRC furlough calculator when calculating the amount for the furlough and just claim the 80% salary contribution?

Many thanks

Read More
Guest
This comment was minimized by the moderator on the site

Sounds like you should ignore HMRC's calculator if it is adjusting for the ERs NICs allowance and that is not claimable. You need to calculate the correct amount via your own payroll.

Guest
This comment was minimized by the moderator on the site

We ticked the employment allowance box on our payroll software our first pay dy was April 6th which meant we couldn’t claim ers Nic from job retention scheme can we claim when the 4000 finished

Guest
This comment was minimized by the moderator on the site

This is the guidance provided by HMRC on this:

"In calculating the total employer National Insurance contributions paid in any pay period, the employer should subtract any employment allowance used in that pay period. If you have not, or do not...

This is the guidance provided by HMRC on this:

"In calculating the total employer National Insurance contributions paid in any pay period, the employer should subtract any employment allowance used in that pay period. If you have not, or do not expect to pay any employer national insurance contributions in a pay period as a result of the employment allowance, you should not claim any employer national insurance contributions costs for furloughed employees in that pay period. If you expect to exhaust any employment allowance in a pay period then you should claim the lower of the employer national insurance contributions grant calculation, and the employer national insurance contributions costs that you paid, or expect to pay across your entire payroll."

Read More
Guest
This comment was minimized by the moderator on the site

I’m a director of my own small business
I pay myself 720 a month basic
This is topped up with dividends every 4/5 months
Seems like my accounts to my money and ran
As I’ve had no help off them
I’ve now not worked in 8 weeks
Is there...

I’m a director of my own small business
I pay myself 720 a month basic
This is topped up with dividends every 4/5 months
Seems like my accounts to my money and ran
As I’ve had no help off them
I’ve now not worked in 8 weeks
Is there anything I can claim
Or any advice
As soon it’s going to be the choice of my wife putting fuel in her car to help save life’s or put food on the table for the kids at home
Any advice would be grateful
I do know I can’t claim a grant Cos I don’t pay bussiness rates on a building

Read More
Guest
This comment was minimized by the moderator on the site

If you meet all of the conditions listed above and follow the proper processes you may be able to furlough yourself and claim 80% of your monthly salary - if you cannot go to your accountant for advice on this suggest you contact HMRC to discuss....

If you meet all of the conditions listed above and follow the proper processes you may be able to furlough yourself and claim 80% of your monthly salary - if you cannot go to your accountant for advice on this suggest you contact HMRC to discuss. I'm afraid we can't advise on individual circumstances here.

Read More
Guest
This comment was minimized by the moderator on the site

My employer has not topped up the furlough payment which being capped at £2500 has left me seriously out of pocket and is bringing back colleagues to work who earn less than me, what can be done and do I have options to benefits?

Guest
This comment was minimized by the moderator on the site

You need to discuss this with your employer, it is a matter of employment law.

Guest
There are no comments posted here yet
Load More

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location