If you are unable to maintain your workforce as your operations have been influenced by coronavirus (COVID-19), you will be able to provide vacation workers with a gift to cover a parcel of their normal month-to – month wage costs where they are recorded on furlough.
The Coronavirus Job Maintenance Conspire is due to end on October 31, 2020.
From 1 July managers will be able to return furloughed workers to any amount of time and any shift pattern, while still capable of claiming a CJRS grant for the hours not working.
From 1 August 2020, the grant level will be lowered every month. To be eligible for the grant employers must pay 80 per cent of their wages to furloughed employees, up to a maximum of £2,500 a month for the time they are furloughed.
The scheme changes timetable is outlined below. Wag cap are proportional to the hours a furloughed employee is made. For example, if they are put on furlough for 60 per cent of their working hours, an employee is entitled to 60 per cent of the £2,500 cap:
- No changes to grant level occur in June.
- In June and July, the government must pay 80 per cent of salaries up to a limit of £ 2,500 in furlough hours, as well as workplace Social Insurance Premiums (ER NICS) and pension contributions for furlough hours. Employers would be expected to pay workers for the hours they work.
- The government must pay 70 percent of the salaries for September up to a limit of £2.187.50 for the hours that the employee is on furlough. Employers must pay ER NICs and pension contributions and raise the wages of workers to ensure that they earn 80 per cent of their salary up to a limit of £ 2,500 for the period they are furloughed.
- In October, the government must pay 60 per cent of the salary for the hours the employee is on furlough up to a limit of £1,875. Employers must pay ER NICs and pension contributions and raise the wages of workers to ensure that they earn 80 per cent of their salary up to a limit of £ 2,500 for the period they are furloughed.
Employers will continue to opt to raise employee salaries above the average of 80% and £2,500 for the hours not worked at their own expense if they so wish. Employers would have to pay for the hours worked.
The table shows the contribution from the government, the necessary contribution from the employer and the amount earned by the employee where the employee is furloughed 100% of the time.
Who can claim?
When you have: You can sue for any employee you have furloughed.
- That employee was furloughed for at least three consecutive weeks between 1 March and 30 June 2020
- The UK payment scheme commenced on or before 19 March 2020
- Enrolled online for PAYE
- The report for that employee was submitted on or before 19 March 2020 under the Real Time Information (RTI) reporting framework
- A UK bank account.
For employees who meet the above criteria, the number you claim for in any single claim period beginning on 1 July can not exceed the maximum number of employees that you claimed under any claim that ends on 30 June.
For example, between 1 March 2020 and 30 June, an employer had previously filed three claims in which the total number of employees furloughed in each respective claim was 30, 20 and 50 employees. Then the maximum number of employees to be furloughed by the employer in any single claim starting on or after July 1 would be 50.
What you’ll need
You’ll need to make a claim to:
• To register online for Payment
• Your UK account number and sort code (only have bank account information where you can accept a BACS payment)
• The checking account billing address (this is the address on your bank statements)
• Reference number for your employer PAYE scheme
• Number of employees furloughed.
• National insurance number for each employee (you will need to search for their number if you do not have it or contact HMRC if your employee has no number).
• Payroll or number of employees per employee (optional)
• Date of commencement and end of claim
• Full amounts which you claim to include:
- employee wages
- employer National Insurance contributions (for claims up to 31 July)
- employer minimum pension contributions (for claims up to 31 July)
- your phone number
- contact name
Using an agent to do PAYE online
If you are using an agent authorized to make online PAYE for you, they can claim on your behalf.
You can do that by accessing your HMRC online services and selecting ‘Manage Account’ if you want to use an agent but don’t have one authorized to do PAYE online for you.
In order for employers to do this, you must be enrolled in PAYE online, and you will need to ask your agent for their ID. Your agent can get this by selecting ‘authorize client’ from their HMRC online agency service.
You can also use this service to remove your agent’s authorisation if you don’t want it to continue after they submit your claim(s).
If an agent makes a claim on your behalf you’ll need to tell them which bank account you ‘d like to receive the grant. You only have to provide bank details where you can accept a BACS payment