HMRC have published their Employer Bulletin for April 2021. We summarise the key content for you, with links to our detailed guidance on the topics covered.

COVID-19

Coronavirus Job Retention Scheme (CJRS) 

  • The UK Government will continue to pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, up to the end of June 2021.
  • For periods in July 2021, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50.
  • In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.
  • You will need to continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.
    • This means, for periods between July and September, you will need to fund the difference between this and the CJRS grants yourself.
    • You can also top up wages above 80% if you wish, but you are not required to do so.
  • You must continue to pay the associated Employer National Insurance Contributions and pension contributions on subsidised furlough pay from your own funds.
  • There is detailed guidance to help you claim through the CJRS and key deadlines you need to be aware of:
    • March 2021 claims must be submitted no later than Wednesday 14 April 2021.
    • April 2021 claims must be submitted no later than Friday 14 May 2021.

CJRS eligibility from May 2021

  • For periods from 1 May 2021 onwards, you will be able to claim for eligible employees who were employed by you and on your PAYE payroll on 2 March 2021.
  • This means you must have made a PAYE Real-Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying of earnings for that employee.
  • You and your employees do not need to have benefited from the scheme before to make a claim, as long as you meet the eligibility criteria.

See COVID-19: Coronavirus Job Retention Scheme (CJRS) from 1 November 2020

A new one-off £500 payment to support working households receiving tax credits

  • Do any of your employees receive Tax Credits?
    • They may be eligible for a one-off payment of £500 to support their household through the COVID-19 pandemic.
  • The new one-off payment is being introduced to provide extra support for working households as the temporary increase in Working Tax Credit of £1,045 a year, introduced at the start of the pandemic, will end as planned on 5 April 2021.
    • Telling your employees about this payment will help protect them from scams and prepare them for changes to their regular Tax Credits payments.
  • HMRC will automatically make the payment by 23 April 2021.
  • HMRC will contact claimants by text message or letter to confirm they will receive the payment.
    • Your employees do not need to contact HMRC or apply for this payment.
  • Your employees may be eligible if, on 2 March 2021, they were getting either:
    • Working Tax Credit.
    • Child Tax Credit and were eligible for Working Tax Credit but their income was too high to get Working Tax Credit payments.
  • The one-off payment will not affect any other benefits, such as Housing Benefit or Universal Credit, that your employees may receive.
  • Your employees do not need to pay Income Tax or National Insurance on the amount of this one-off payment or declare it as income for Self Assessment tax returns if they complete one.

Internationally mobile workers: extended filing dates due to Coronavirus

  • HMRC has extended the end of year payroll reporting deadline for customers with Internationally Mobile workers.
    • The announcement applies to businesses that operate modified payroll reporting for employees coming to or leaving the UK under the procedures known as Appendices 4, 7A, 7B and 8.
    • The original filing deadline for the 2019-20 returns under Appendices 7a and 7b was 31 March 2021.
    • The original filing deadline for the 2019-20 returns under Appendices 4 and 8 was 31 May 2021.
  • The deadline for returns and payments, where appropriate, has now been extended to 30 June 2021.

Change to amending PAYE Pay Settlement Agreements for Coronavirus items

  • If you have additional items to add to a PAYE Settlement Agreement (PSA), HMRC issue a new P626.
  • For 2020-21, if the additional items relate to Coronavirus only, a new P626 is not required.
    • HMRC will add an appendix to the existing enduring agreement.
  • To add Coronavirus related items, such as taxi fares or car parking for staff who needed to work in the office, or computer equipment to allow staff to work from home to your existing PSA please email: This email address is being protected from spambots. You need JavaScript enabled to view it.

See PAYE Settlement Agreements


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