Over this last weekend the Government set out further clarification of how the Job Retention Scheme is intended to work.

The update seeks to clarify some of the main queries HMRC has received to date. Whilst all the guidance has been refreshed, the main areas HMRC have focussed upon are:

As previously, we must caution that whilst more detailed guidance is welcome, there remains uncertainties – not least in terms of the Government Portal and information that will be required to make your claim, etc. Presumably, we will know more soon….

Should you want to review the latest Scheme details yourself please follow this link

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

In the interim, we have tried to pick up some of the core detail provided in the latest announcement.

 

  1. When Can I Make My Claim?

The online service you will use to claim is not available yet – this is expected to be available by the end of April 2020.

You should make your claim using the amounts in your payroll – either shortly before or during running payroll.

If appropriate, worker’s wages should be reduced to 80% of their salary within your payroll before they are paid. This adjustment will not be made by HMRC.

Claims can be backdated until the 1st March where employees have already been furloughed.

 

  1. How Much Can I Claim? 

You can only claim for furloughed employees that were on your PAYE payroll on or before 28 February 2020, employees hired after 28 February 2020 cannot be furloughed.

Employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts. Foreign nationals are eligible to be furloughed

You will be able to claim for:

 

 

  1. What Do I Need To Have To Be Able To Make A Portal Claim?

You must have:

 

  1. Agreeing To Furlough Employees

Employers should discuss and make any changes to the employment contract by agreement.

 

  1. How Do I Work Out What Pay My Employee Is Due?

The way you work out your employees’ wages is different depending on what type of contract they are on, and when they started work:

You can claim for any regular payments you are obliged to pay your employees:

Note that there is minimum furlough period that you can claim for:

 

  1. What If I Am A Company Director – Can I Be Furloughed?

As office holders, salaried company directors are eligible to be furloughed.

 

  1. Salaried Members of Limited Liability Partnerships

Members of LLPs who are designated as employees for tax purposes (‘salaried members’) are eligible to be furloughed and receive support through this scheme.

 

  1. If Your Employee Undertakes Training

Furloughed employees can engage in training, as long as in undertaking the training the employee does not provide services to, or generate revenue for, or on behalf of their organisation.

 

  1. What If I Have Apprentices?

Apprentices can be furloughed in the same way as other employees and they can continue to train whilst furloughed.

 

  1. What If I Have An Employee On Unpaid Leave?

You can only claim for employees that started unpaid leave after 28 February 2020.

 

  1. What If I Have An Employee On A Fixed Term Contract?

Employees on fixed term contracts can be furloughed.

 

  1. Former Employees Are Contacting Me – Do I Have To Re-Engage Them?

If you made employees redundant, or they stopped working for you on or after 28 February 2020, you can re-employ them, put them on furlough and claim for their wages through the scheme.

 

  1. If You Need Further Assistance?

If you do need further advice please e-mail one of the following in the first instance and we will get back to you as soon as we can.

Please note that we cannot advise further on when or how you go about making your claim – we are waiting that information too!

emilyh@barrons-bds.com

lisag@barrons-bds.com

russellt@barrons-bds.com

richardm@barrons-bds.com

garyr@barrons-bds.com