Here Kevin Drew, Ascentant’s Managing Director, offers timely advice.
Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme (CJRS) went live on 20th April 2020 and employers can now claim a grant from the Government for upto 80% of furloughed employees salaries to a cap of £2500 per month.
Some Accountants are charging clients to undertake these submissions, pushing employers to try to calculate claims themselves and submit their own claims. Ascentant offer this as a free service to its clients. But how straightforward are they? And should you try to submit your own claim?
Employees you can claim for
You can claim for full time employees, part time employees, zero hours contractors and apprentices under the CJRS.
Employees must have been on an RTI payroll submission on or before 19th March 2020 to be eligible for a claim under the scheme.
To be eligible for the scheme, employees on furlough cannot undertake work for or on behalf of the business (or any associated or linked organisation). Furloughed employees must have agreed to be furloughed to be eligible for the scheme.
Calculating the claim
The claim can be made from 1st March 2020 and a claim should be calculated per employee. You should calculate the gross pay for each employee in each payroll or claim period in addition to any employer NI and pension contributions on the gross pay per employee.
For zero hours contractors or those with variable pay, a pay average should be calculated using the employee’s reference pay.
If claiming the employment allowance in the pay period, employer NI should not be claimed in the HMRC claim.
You can only claim 80% of the employee gross pay in each pay period, not exceeding the £2,500 maximum per month.
For employees starting or being furloughed part way through a pay period, the pay should be calculate pro rata.
For full details on calculating a claim, details can be found here.
Submitting the claim
You should have created and started a PAYE scheme on or before 19th March 2020 to be able to submit a claim, be enrolled for PAYE online and have a UK bank account.
You will need your Government Gateway details to hand to enter the HMRC portal here.
You should have your PAYE number available and details of employees being furloughed to include each employee name, employee NI number and employee payroll number in addition to the start and end date of the claim.
Ascentant are submitting claims for clients without any extra charge. If you are considering changing your accountant or require assistance with payroll or bookkeeping, contact us on firstname.lastname@example.org , ring 01332 981920 or complete our no obligation free quote form.