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Updates on the Coronavirus Job Retention Scheme
HMRC have been called on by the Chancellor to urgently direct financial support to whered businesses need it most. The first wave of this is the launch of the Coronavirus Job Retention Scheme.
Claims should not be made by phone, it will be an online service.
The Coronavirus Job Retention Scheme (CJRS)
In response to the coronavirus pandemic, the Chancellor announced a series of measures to support businesses and their employees. One of those measures is the CJRS, that allows employers to claim 80% of the wages of staff (up to a maximum of £2,500 per employee) that they have furloughed (been put on temporary leave).
HMRC is working at pace to deliver the service that will allow businesses to make a claim.
Businesses and Agents that are authorised to act on behalf of clients for PAYE matters, will be able to claim.
Service launch - the scheme should be ready to launch on 20th April 2020.
Businesses will need the following information on each of their furloughed employees:
If we are your Agent then we will go through this process for you - as soon as we are made aware that the process is ready to begin then our payroll team will submit claims for those staff that you have advised are to be furloughed. We will liase with you before submission is made.
HMRC are asking that you do not ring them with a query, get in touch with us preferably via email and we'll get back to you as soon as we can.
The latest guidance on CJRS can be found on GOV.UK by searching for 'Coronavirus Job Retention Scheme'.
HMRC will also be providing you with further information on our support for businesses and workers over the coming weeks, including more detail on the Coronavirus Self Employment Income Support Scheme.
We would like to thank you for your help to businesses at this time of national need. HMRC is working day and night, prioritising the need to get the financial support out to those who need it.
HMRC have been called on by the Chancellor to urgently direct financial support to whered businesses need it most. The first wave of this is the launch of the Coronavirus Job Retention Scheme.
Claims should not be made by phone, it will be an online service.
The Coronavirus Job Retention Scheme (CJRS)
In response to the coronavirus pandemic, the Chancellor announced a series of measures to support businesses and their employees. One of those measures is the CJRS, that allows employers to claim 80% of the wages of staff (up to a maximum of £2,500 per employee) that they have furloughed (been put on temporary leave).
HMRC is working at pace to deliver the service that will allow businesses to make a claim.
Businesses and Agents that are authorised to act on behalf of clients for PAYE matters, will be able to claim.
Service launch - the scheme should be ready to launch on 20th April 2020.
Businesses will need the following information on each of their furloughed employees:
- National Insurance number
- salary, National Insurance and pension contribution information that allows business to calculate the claim amount.
If we are your Agent then we will go through this process for you - as soon as we are made aware that the process is ready to begin then our payroll team will submit claims for those staff that you have advised are to be furloughed. We will liase with you before submission is made.
HMRC are asking that you do not ring them with a query, get in touch with us preferably via email and we'll get back to you as soon as we can.
The latest guidance on CJRS can be found on GOV.UK by searching for 'Coronavirus Job Retention Scheme'.
HMRC will also be providing you with further information on our support for businesses and workers over the coming weeks, including more detail on the Coronavirus Self Employment Income Support Scheme.
We would like to thank you for your help to businesses at this time of national need. HMRC is working day and night, prioritising the need to get the financial support out to those who need it.
Self-employed individuals are to be paid 80% of trading profits, up to £2,500 a month, to help them cope with coronavirus crisis. This will be based on figures for the last three years TRADING PROFIT up to £50k. It will cover those who earn a MAJORITY of their income from being self employed and they must have filed a 2019 tax return.
It looks as though the function to claim this grant is not going to be up and running until the beginning of June 2020. Meanwhile, the Chancellor is recommending that people apply under the Universal Credit system to get help straight away.
If you haven't filed your tax return for April 2019 then the Chancellor is giving extra time to get your return filed. So if you missed your deadline and still haven't filed you have the chance to catch up and still be eligible for this grant.
It looks as though the function to claim this grant is not going to be up and running until the beginning of June 2020. Meanwhile, the Chancellor is recommending that people apply under the Universal Credit system to get help straight away.
If you haven't filed your tax return for April 2019 then the Chancellor is giving extra time to get your return filed. So if you missed your deadline and still haven't filed you have the chance to catch up and still be eligible for this grant.
A furloughed employee is one who has been given a temporary leave of abscence due to the needs of an employer. This means a furloughed worker can return to work in the future and will get paid. The salary payment could be at 80% which the government are covering and it is up to the employer if they wish to cover the 20% to make up the salary.
The scheme is said to be going to run for 3 months from 1st March but they may potentially extend it. The maximum amount of time a worker can be furloughed is one year.
Specific Covid-19 plans..
If an employer cannot cover staff costs due to COVID-19, they may be able to access support to continue paying part of staff wages, to avoid redundancies.
If an employer intends to access the Coronavirus Job Retention Scheme, they will discuss with staff becoming classified as a furloughed worker. This would mean that employees are kept on the payroll, rather than being laid off.
To qualify for this scheme, employees should not undertake work for the employer while they are furloughed. This will allow the employer to claim a grant of up to 80% of wages for all employment costs, up to a cap of £2,500 per month.
As a payroll service provider we will be keeping you up to date with the latest developments and hope to find out exactly how to apply very soon.
The scheme is said to be going to run for 3 months from 1st March but they may potentially extend it. The maximum amount of time a worker can be furloughed is one year.
Specific Covid-19 plans..
If an employer cannot cover staff costs due to COVID-19, they may be able to access support to continue paying part of staff wages, to avoid redundancies.
If an employer intends to access the Coronavirus Job Retention Scheme, they will discuss with staff becoming classified as a furloughed worker. This would mean that employees are kept on the payroll, rather than being laid off.
To qualify for this scheme, employees should not undertake work for the employer while they are furloughed. This will allow the employer to claim a grant of up to 80% of wages for all employment costs, up to a cap of £2,500 per month.
As a payroll service provider we will be keeping you up to date with the latest developments and hope to find out exactly how to apply very soon.
Certifying absence from work
By law, medical evidence is not required for the first 7 days of sickness. After 7 days, employers may use their discretion around the need for medical evidence if an employee is staying at home.
We strongly suggest that employers use their discretion around the need for medical evidence for a period of absence where an employee is advised to stay at home either as they are unwell themselves, or live with someone who is, in accordance with the public health advice issued by the government.
If evidence is required to cover self-isolation or household isolation beyond the first 7 days of absence then employees can get an isolation note from NHS 111 online or from the NHS website.
What to do if an employee needs time off work to look after someone
Employees are entitled to time off work to help someone who depends on them (a ‘dependant’) in an unexpected event or emergency. This would apply to situations related to coronavirus (COVID-19). For example:
By law, medical evidence is not required for the first 7 days of sickness. After 7 days, employers may use their discretion around the need for medical evidence if an employee is staying at home.
We strongly suggest that employers use their discretion around the need for medical evidence for a period of absence where an employee is advised to stay at home either as they are unwell themselves, or live with someone who is, in accordance with the public health advice issued by the government.
If evidence is required to cover self-isolation or household isolation beyond the first 7 days of absence then employees can get an isolation note from NHS 111 online or from the NHS website.
What to do if an employee needs time off work to look after someone
Employees are entitled to time off work to help someone who depends on them (a ‘dependant’) in an unexpected event or emergency. This would apply to situations related to coronavirus (COVID-19). For example:
- if they have children they need to look after or arrange childcare for because their school has closed
- to help their child or another dependant if they’re sick, or need to go into isolation or hospital
The Self Employed
Every self-employed person can now access, in full, Universal Credit at a rate equivalent to Statutory Sick Pay for employees
https://www.understandinguniversalcredit.gov.uk/coronavirus/
Support for individuals
https://www.understandinguniversalcredit.gov.uk/coronavirus/ or new style Employment and Support Allowance.
https://www.gov.uk/guidance/new-style-employment-and-support-allowance
Every self-employed person can now access, in full, Universal Credit at a rate equivalent to Statutory Sick Pay for employees
https://www.understandinguniversalcredit.gov.uk/coronavirus/
Support for individuals
- the Universal Credit standard allowance has been increased, for the next 12 months, by £1,000 a year.
- the Working Tax Credit basic element has been increased, for the next 12 months, by £1,000 a year.
- increasing housing benefit and Universal Credit, so that the Local Housing Allowance will cover at least 30% of market rents in your area.
- The self-assessment tax payments due on 31st July 2020 will be deferred until January 2021. No penalties or interest for late payment will be charged in the deferral period.
- Sick pay o You can get £94.25 per week Statutory Sick Pay (SSP) if you’re too ill to work. It’s paid by your employer for up to 28 weeks.
- If you are staying at home because of COVID-19 you can now claim SSP. This includes individuals who are caring for people in the same household and therefore have been advised to do a household quarantine.
- To check your sick pay entitlement, you should talk to your employer, and visit the Statutory Sick Pay (SSP) page here for more information: https://www.gov.uk/statutory-sick-pay
- SSP start date o SSP to be paid from day 1, rather than day 4, of your absence from work if you are absent from work due to sickness or need to stay at home due to COVID-19. Once the legislation has been passed, this will apply retrospectively from 13 March. You should talk to your employer if you are eligible for SSP and need to claim.
- Proof of sickness - If you have COVID-19 or are advised to stay at home, you can get an ‘isolation note’ by visiting NHS 111 online, rather than visiting a doctor. For COVID-19 cases this replaces the usual need to provide a ‘fit note’ (sometimes called a ‘sick note’) after 7 days of sickness absence.
- If you are not eligible for SSP – for example if you are self-employed or earning below the Lower Earnings Limit of £118 per week – and you have COVID-19 or are advised to stay at home, you can now more easily make a claim for Universal Credit
https://www.understandinguniversalcredit.gov.uk/coronavirus/ or new style Employment and Support Allowance.
https://www.gov.uk/guidance/new-style-employment-and-support-allowance
- If you are eligible for new style Employment and Support Allowance, it will now be payable from day 1 of sickness, rather than day 8, if you have COVID-19 or are advised to stay at home.
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