Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme that was created and started on or before 28 February 2020, will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis. This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’.
HMRC will pay employers a grant worth 80% of an employee’s usual wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. This is to safeguard workers from being made redundant. The Coronavirus Job Retention Scheme will cover the cost of wages backdated to March 1st if applicable and is initially open for 3 months, but will be extended if necessary.
All UK-wide employers with a PAYE scheme that was created and started on or before 28 February 2020 will be eligible including:
- Recruitment Agencies (agency workers paid through PAYE)
- Public Authorities
The employer must have a UK bank account.
You will need to:
Designate affected employees as ‘furloughed workers,’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.
Once the new online portal is live, submit information to HMRC about the employees that have been furloughed and their earnings.
To make a claim, you will need:
- to be registered for PAYE online
- your UK bank account number and sort code
- your employer PAYE scheme reference number
- the number of employees being furloughed
- each employee’s National Insurance number
- each employee’s payroll or employee number
- the start date and end date of the claim
- the full amount you’re claiming for including employer National Insurance contributions and employer minimum pension contributions
- your phone number
- You also need to provide either:
- your Corporation Tax unique taxpayer reference
- your Self Assessment unique taxpayer reference
- your company registration number
If you’re putting more than 100 employees on furlough:
If you’re claiming for more than 100 furloughed employees, you’ll need to upload a file containing each employees:
- full name
- National Insurance number
- payroll number (optional)
- furlough start date
- furlough end date (if known)
- full amount claimed
The HMRC portal for making a claim is now live. You’ll need the Government Gateway user ID and password you got when you registered for PAYE online. The first grants are expected to be paid before the end of April. If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.
For more information and to claim visit here.
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