Newsflash - Coronavirus Job Retention Scheme goes live 20 April 2020

April 18th 2020

There have been a few changes to the scheme since our previous update on 8 April which set out the rules of the scheme, and can be seen here on the Covid-19 page of our website 

 https://www.bgm.co.uk/insight/news/coronavirus-job-retention-scheme-updated

Change to qualifying payroll date 

• The scheme will now apply to employers who have created and started a PAYE payroll scheme on or before 19 March 2020. (Previously, the Government notice advised that the payroll had to be operating on 28 February 2020.)
• A claim can only be made for furloughed employees who were on the payroll on or before 19 March 2020 (this had previously been 28 February 2020).

These employees must have been notified to HMRC on an RTI submission on or before 19 March 2020.

• Employees that were employed and on the payroll at 28 February 2020 (i.e. notified to HMRC on an RTI submission on or before 28 February) and who were made redundant, or stopped working for the employer, after that and prior to 19 March 2020, can also qualify for the scheme if the employer re-employs them and puts them on furlough. 

A claim can also be made for employees who were made redundant, or stopped working on or after 28 February 2020, have been be re-employed and put on furlough, even if they were not re-employed until after 19 March. 

• The amount of the claim for full or part time employees can now be based on 80% of the employee’s salary in their last pay period prior to 19 March 2020.

If, based on previous guidance, the claim has been calculated 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) it is possible to choose to still use this calculation for the first claim.

Extension of the scheme

• Another change is that the scheme will last for 4 months from 1 March 2020.

HMRC Step by step guide on how to make a claim.

• HMRC have published a step by step guide on how to apply for a claim once the scheme goes live on 20 April 2020 at https://bit.ly/2VDsRx5
• To access the system on GOV.UK the employer or agent will need to have: 
  • A Government Gateway ID and password 
  • An active PAYE enrolment 

If you do not have these, you can register for them at 

https://www.gov.uk/log-in-register-hmrc-online-services/register

https://www.gov.uk/paye-online/enrol

This application needs to be done in one session. There is currently no save and return option. Sessions will time out after 30 minutes of inactivity.

• Before starting the online application all the necessary information and calculations need to be available to the person making the claim, either the employer or an agent authorised to act for PAYE.
• Here is a list of all the information needed to make a claim:

1. The number of employees being furloughed
2. The dates employees have been furloughed to and from
3. Details of employees – the name and National Insurance Number of each furloughed employee
4. Employer PAYE scheme reference number
5. Employer Corporation Tax Unique Taxpayer Reference, Self-Assessment Unique Taxpayer Reference or Company Registration Number as appropriate 
6. Employer UK bank account details
7. Employer organisation’s registered name
8. Employer organisation’s address

• Employers with full-time or part-time employees on a set salary, will need to work out the following for the claim period: 
  • the total amount being paid to furloughed employees (up to 80% of £2,500 a month before tax per employee) 
  • the total employer NICs
  • the total employer pension contributions (up to 3%)
• Employers with more than 100 employees need to provide the following additional information
  • Claim amount per furloughed employee 
  • Claim period for each furloughed employee

and need to upload the claim information in one of the following formats:  XLS, XLSX, CSV, ODP

• An HMRC calculator will be available to help calculate the amount that can be claimed. 
• There is an example calculation in the HMRC step by step guide and further worked examples on how to calculate your furlough claim at https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme  
• The HMRC guide also includes the following important information about making claims
  • You cannot make more than one claim during a claim period – you should make your claim shortly before or during running payroll. You must claim for all employees in each period at one time as you cannot make changes to your claim.
  • The scheme will open on 20 April for claims. You will receive payment six working days after making an application. If you wish to receive a payment from the scheme by the end of the month, you will need to submit your claim at least six working days in advance for the money to clear into your bank account.

We will continue to monitor Government announcements and provide updates as the situation evolves over email, on our website, LinkedIn and Twitter account.

Please contact your BGM advisor or email communications@bgm.co.uk if you would like any assistance.