TO ACCESS THE CLAIM PORTAL CLICK HERE - SCROLL DOWN TO "HOW TO CLAIM" AND CLICK THE "CLAIM NOW" GREEN BUTTON

BUDGET [03-Mar-2020]

• FURLOUGH IS EXTENDED TO 30th SEPTEMBER 2021.
• July - the employee pay rate will remain at 80% but the claim rate will decrease to 70%.
• Aug & Sep - the employee pay rate will remain at 80% but the claim rate will decrease to 60%
• both similar to last years phasing out.

From 1st December 2020: [Published - 05-Nov-2020] - CJRS is now extended to March 2021.

THE DEADLINE FOR CLAIMING FURLOUGH FOR DECEMBER IS 14th JANUARY 2021.

THE DEADLINE FOR CLAIMING FURLOUGH FOR NOVEMBER IS 14th DECEMBER 2020.

THE DEADLINE FOR CLAIMING FURLOUGH FOR OCTOBER IS 30th NOVEMBER 2020.

From 1st November 2020: [Published - 01-Nov-2020] - CJRS is now extended to through November 2021.

The scheme will mirror the August level covering 80% of pay for business required to close.

Employers will still cover:

• Employer's NI.
• Employer's pension contributions.

Who is eligible; employer's:

• With a UK bank account and UK PAYE scheme.
• Neither the employer or the employee needs to have previously used the furlough scheme.
• On the payroll with an RTI submission to HMRC before 23:59 30th October 2020.
• For part furloughed workers, the government will cover 80% of the non-worked hours.
• Employer's can still top up the pay to 100% voluntarily if they wish.

Some business grants will be available.

More details at:

https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced

From 1st October 2020: [Published - 01-Aug-2020]

• The furlough claim from HMRC reduces from 70% to 60%.
• Employees' must still be paid 80% of their normal pay.
• The deadline for October claims is 30th November 2020.
• If any adjustments overpaid or underpaid, you must contact Hmrc before 30-Nov-20.

From 1st September 2020: [Published - 01-Aug-2020]

• The furlough claim from HMRC reduces from 80% to 70%.
• Employees' must still be paid 80% of their normal pay.
• September claim deadline 31st October 2020.

From 1st August 2020: [Published - 01-Aug-2020]

• Furlough claims remain at 80%.
• You can no longer claim for the employer pension contribution.
• You can no longer claim for the employer national insurance.

From 1st July 2020 you will: [Published - 01-Oct-2020]

• Only be able to claim for employees who have previously been furloughed for at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June 2020.
• Be able to flexibly furlough employees – this means you can bring your employees back to work for any amount of time, and any work pattern.
• Still be able to claim the furlough grant for the hours your flexibly furloughed employees do not work, compared to the hours they would normally have worked in that period.

Published - 01-Jul-2020 

• Since the furlough started, furlough claims could be weekly, several weeks together or calendar monthly.
• Any claim over lapping 30th June 2020 will be prorate reduced to 30th June.
• Claims for July onwards will be calendar monthly only.
• The deadline for all claim period pre 1st July will be 31st July.
• The deadline for all claims post 1st July will be one calendar month; e.g. the claim deadline for July is 31st August.

FURLOUGH - FLEXIBLE PART-TIME WORKING

Staff that have returned to work part-time & partly furloughed will receive "furlough grant for the hours not worked compared to the hours they would normally have worked during that period"; remaining at 80%.

Example - Contacted to work 40hrs pw; worked 2-weeks and was furloughed 2-weeks on their current rate of pay including any national minimum wage increase.

• If someone earns £1000 per month (£250pw).
• 2 weeks will be paid at the full rate £500.
• 2 weeks will be paid at the 80% rate £400 (500 x80%).
• The amount of furlough you can claim from Hmrc is £400.
• Employer can still choose to top up the furlough pay from £400 to £500, but the amount of furlough you can claim from Hmrc remains at the 80% level.

FURLOUGHING STAFF - THE DEADLINE FOR ALL CLAIMS UP TO 30th JUNE IS 31st JULY.

If you are claiming for any furloughed employees, you do need an online business tax account with HMRC. Once you have a business tax account, the payroll service needs to be added (known as enrolled). For more information on tax accounts, please visit my tax account webpage - link above.

CLICK HERE FOR JOB RETENTION SCHEME ELIGIBILITY GUIDANCE

1.  YOU MUST USE THE CALCULATOR BEFORE YOUR CLAIM  - ensure you read it states what information you require.
1. CLICK HERE ACCESS TO THE CALCULATOR - HOW MUCH CAN YOU CLAIM?
2. YOU MUST KEEP DETAILED CALCULATIONS - YOU MAY BE AUDITED LATER.
3. PRINT CALCULATION FOR EACH EMPLOYEE AT THE END.
4. MONTHLY EXAMPLE CLICK HERE
5. WEEKLY EXAMPLE CLICK HERE
2. YOU MUST KEEP DETAILED CALCULATIONS ON YOUR FURLOUGH CLAIM FOR 3-YEARS, SUFFICIENT THAT YOU CAN RECREATE IF NECESSARY.
3. TIP: your claim period = the pay period e.g.

• 1st March - 31s March, furlough date is entered on the third screen.
• 21st March - 27th March.
• You can claim for longer periods.
• Monthly wages, you can claim for March/April together but I would recommend two separate claims, easier to manage the calculations.
• Weekly wages you can claim for whole weeks at a time e.g. sat 4th Apr to Fri 1st May.
• Call me if you are unsure.

MAIN POINTS

• If you pay staff over the 80% limit, Employer NI & pension can only be claimed up to the 80% limit.
• Director's -  most of you we pay just over the NI threshold for your state pension entitlement, therefore at 80% pay, you are under the NI threshold so you cannot claim the Employer NI - this simplifies your calculation.
• Directors, if you have still worked, do not claim for yourself.
• If staff are furloughed for less than 3 weeks, you cannot claim.
• Employees on zero hour contracts and fixed term contracts can claim.
• Umbrella companies are included.
• You don't need to furlough all employees.
• Furloughed staff CAN work for other employers as long as they are not connected to you.
• Keep detailed calculations of each claim you make.

FIXED WAGES vs. VARIABLE WAGES

• Employee's on fixed pay is straight forward 80% of their standard pay.
• Employee's on Variable pay will be due the higher of either:
• The pay they received for the same period in 2019 e.g. April 2019 for April 2020.
• Their average pay during 2019-20 up to their furlough date e.g. 6-Apr-19 to 23-Mar-20.
• Therefore, as I understand it we do not have increase for the national minimum wage.

EMPLOYMENT ALLOWANCE (EA) - CONFUSION

• The EA is an allowance created when the recession hit where employers are let off the employer's NI on the first £4000 (£3000 in 2019-20).
• The guidance says that if you are claiming the EA, you must not claim the employer's NI element on your furlough claim.
• The guidance is worded that you can only employer NI if your employer NI exceeds the EA.
• This might have been fine in March when you could have run out of EA.
• To have used all of your EA in April in virtually impossible; you'd have to have a very large payroll.
• Even if your monthly PAYE is approx. £1500 p.c.m. it is likely to be month-3/4 before you have run out of your EA.
• To see an example of a payroll fully using its EA during the year vs. a payroll not using its full EA during the year CLICK HERE.
• This is a P32 (employer's PAYE summary) covering they whole year after month 12.
• If you have already included the Employer's NI in your claim for April, don't panic it is a small portion. Safer not to claim going forward unless you know you have utilised all of your EA.