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Since 2019 businesses above the VAT threshold are required to keep their records digitally and submit their VAT return using compatible software.

Myths

Under Making Tax Digital (MTD), businesses will have to provide more information than they already do

This is not correct: no business will need to provide information to HMRC more regularly than they do now, nor send any additional information.

Businesses above the VAT threshold can choose not to join MTD and continue to submit returns as they always have done.

This is not correct: businesses above the VAT threshold were required to join MTD and submit their VAT returns using the new service for their first VAT period which began on or after 1 April 2019. Most businesses have signed up, but any business yet to do so should join MTD urgently.

MTD won’t reduce errors

This is not correct: keeping records on paper and submitting VAT returns to HMRC manually results in errors – in a YouGov poll 61% of businesses said they have previously lost receipts– and errors also occur in the manual transposition of data and manual calculations.

MTD offers a more integrated approach to business administration and tax, reducing the time businesses spend on administration in the longer term and making it easier for them to get their tax right.

HMRC has underestimated the administrative burden and costs to businesses for MTD

This is not correct: there are MTD-compatible solutions available at no or low cost for most businesses, including 14 products that are available for free, with varying conditions of use.

Costs will differ from business to business and are influenced by the size and complexity of the business and their degree of digital capability, as well as the type of functionality they want their software to include. Most businesses will be able to claim any costs for hardware and software against their tax.

Small businesses should be automatically exempt

This is not correct: the smallest businesses are currently exempt from MTD but can join voluntarily.

More than 280,000 businesses below the VAT threshold have already chosen to sign up and experience the benefits digital record keeping has to offer, in advance of MTD being extended to those below the threshold in April 2022.

Businesses that cannot go digital will not be required to do so.

This is not correct: businesses have until their first VAT return‎ period starting on or after 1 April 2021 to put digital links in place between software products (existing links must be maintained), but it is prudent to put these links in place now.

Eventually you will not be able to use spreadsheets or bridging software under MTD

This is not correct: businesses can choose to use spreadsheets to both maintain digital records and perform tax calculations, provided the spreadsheets combine with some form of ‘bridging’ software that will allow their VAT return data to be sent to HMRC from the spreadsheet.

It is not true that HMRC sees the use of spreadsheets or bridging software for MTD as a temporary arrangement. There is no set end date for the use of spreadsheets or bridging software with the MTD for VAT service.

However, users will get the maximum benefits from MTD – fewer errors, increased productivity and better financial planning – by using dedicated MTD software.

This provides the full end-to-end experience, from digital record keeping to sending the return to HMRC. We recognise that for some businesses ‘bridging’ products, which work by linking and extracting data from other software products and spreadsheets to submit the returns, will be the simplest way to comply with the new requirements.

 

Watergates have pledged to help fund raise for a dedicated, single-site, state of the art children's hospital to care for the children of Leicester and the East Midlands, we need your support to help us achieve our target. #DoThemProud

https://www.justgiving.com/fundraising/watergates-accountants

 

First in the East Midlands

Childrens services in Leicester hospitals are amongst the busiest in the country yet the East Midlands is the only region in England without a dedicated, single-site childrens hospital.

 

They are our future

The children of today are the leaders of tomorrow. Safeguarding their health and well-being should be of paramount importance.

 

Be part of cementing a Legacy

Be a part of cementing a legacy to benefit future generations through the development of a dedicated state of the art childrens hospital to serve the East Midlands.

 

We need your support to progress to the initial phase of the project.

Our target of £250,000 (by end of July 2020) will help achieve:

A dedicated HDU Ward

The High Dependency Unit (HDU) ward consists of 10 x single bed rooms (located on 5th Floor of Kensington Building, Leicester Royal Infirmary).

 

Isolated areas

Where sick and poorly children can be offered the very best of care.

 

Local treatment

Removing the need for children to be transferred to specialist units around the country.

 

100% of funds raised will be utilised for the development of the HDU ward.

 

SAFEGUARD OUR LOCAL CHILDREN, SAFEGUARD OUR FUTURE!

 
 

 

 
Find out how to register your restaurant or establishment for the Eat Out to Help Out Scheme.
 

You can register for the scheme from 13 July 2020.

You can use the Eat Out to Help Out Scheme to offer a discount to diners and encourage them to eat at your restaurant.

You can use the Eat Out to Help Out Scheme:

  • all day, every Monday, Tuesday and Wednesday from 3 to 31 August 2020

  • to offer a 50% discount, up to a maximum of £10 per person, to diners for food or non-alcoholic drinks to eat or drink in

  • to claim the money back from the government

There is no limit to the number of times customers can use the offer during the period of the scheme. Your customers cannot get a discount for someone who is not eating or drinking.

Alcohol and service charges are excluded from the offer.

Registration will close on 31 August.

Who can register

You can register if your establishment:

  • sells food for immediate consumption on the premises

  • provides its own dining area or shares a dining area with another establishment for eat-in meals

  • was registered as a food business with the relevant local authority on or before 7 July

You cannot register:

  • an establishment that only offers takeaway food or drink

  • catering services for private functions

  • a hotel that provides room service only

  • dining services (such as packaged dinner cruises)

  • mobile food vans or trailers

If your application is based on dishonest or inaccurate information, your registration will be revoked.

What you’ll need

To register, you must have:

  • your Government Gateway ID and password (if you do not have one, you can create one when you register)

  • the name and address of each establishment to be registered, unless you are registering more than 25

  • the UK bank account number and sort code for the business (only provide bank account details where a BACS payment can be accepted)

  • the address on your bank account for the business (this is the address on your bank statements)

You may also need your:

  • VAT registration number (if applicable)

  • employer PAYE scheme reference number (if applicable)

  • Corporation Tax or Self Assessment unique taxpayer reference

If you are registering 25 establishments or less, you must provide the details of each.

If you’re registering more than 25 establishments

If you’re registering more than 25 establishments that are part of the same business, you do not have to provide details for each one.

You should provide a link to a website which contains details of each establishment participating in the scheme including the trading name and address.

You may also need to provide a list to HMRC on request, with details of all participating establishments.

Register

You cannot register yet. The service you‘ll use to register will be available from 13 July 2020.

What happens next

You’ll be registered instantly and will receive a registration reference number - you’ll need this when you claim the reimbursement.

You can download promotional materials to help you promote the scheme and let your customers know that you’re taking part.

You’ll be added to a list of registered establishments that will be available to the public. The list of registered establishments is not available yet.

Businesses that have more than one establishment are encouraged to register all establishments that are eligible to offer the scheme. Once you have registered your business it may be possible to add new establishments, but you will have to contact HMRC again and this may delay the establishment being included in the scheme.

If you want to be removed from the list of registered establishments, you should contact HMRC who will remove you manually. This is not immediate, so you must tell customers that you are no longer offering the discount.

When you start offering the discount

You should wait until you’re registered before you offer discounts to your customers. You cannot offer discounts before 3 August.

When you register for the scheme, it is expected that you will offer it during the whole of your opening hours on all the eligible days that you are open and on all qualifying sales of food or drink.

If a customer purchases a meal with the intention of eating it but then takes it away and leaves the premises, you can still apply the discount.

Records you must keep

For each day you’re using the scheme, you must keep records of the:

  • total number of people who have used the scheme in your establishment

  • total value of transactions under the scheme

  • total amount of discounts you’ve given

If you are using the scheme for more than one establishment, you must keep these records for each.

Making a claim

You cannot claim yet. The service you’ll use to claim reimbursements will be available on 7 August 2020.

The service will close on 30 September.

You must wait 7 days from registration to make your first claim. HMRC will pay eligible claims within 5 working days.

You will be able to submit claims on a weekly basis.

You’ll still need to pay VAT based on the full amount of your customers’ bills.

Any money you receive through the scheme will be treated as taxable income.

HMRC will provide more guidance on how to make a claim when the registration service is open.

Other help you can get

HMRC have published guidance with more information on eligibility and how to offer the discount.

NHS have introduced the test and trace service to help track the spread of coronavirus.

Find coronavirus financial support for your business.

Contact HMRC

A dedicated phoneline and webchat will be available from 13 July 2020. This guidance will be updated.

Published 9 July 2020
 
 

 

 

Workers who have coronavirus tests paid for by their employer will have to pay tax on them.

Tax authorities have confirmed that tests will be treated as a "benefit in kind", and so will be subject to extra income tax for employees.

With some companies requiring regular tests, the tax bills will mount, Treasury Committee chairman Mel Stride has warned.

Chancellor Rishi Sunak has promised to look into the issue "very quickly".

"Many employees, especially healthcare and hospitality workers, are required to undergo regular coronavirus testing," said Mr Stride.

He said the new guidance from HM Revenue and Customs "is unclear and will worry a large number of workers".

"Many of our key workers could be faced with the perverse incentive of avoiding employer-sponsored tests in order to reduce their tax bill," he added.

"This cannot be right. I've asked the chancellor to look into this as soon as possible."

In the House of Commons on Tuesday, Mr Stride urged the chancellor to investigate the issue.

Mr Sunak said: "I'm delighted with him for raising this with me and of course we will look into it very quickly."

Benefits in kind

Benefits in kind are benefits which employees receive from their employers that are not included in their salary.

They are often referred to as "perks" or "fringe benefits", but usually relate to things such as company cars, private medical insurance paid for by the employer and cheap or free loans.

But some company benefits can be tax-free, such as childcare and canteen meals.

HMRC's guidance published on Monday stated: "Coronavirus (Covid-19) testing kits or tests carried out by a third party which have been purchased by you to provide to your employees are treated as a taxable benefit in kind on the employee."

That means a cash value will be assigned to the coronavirus test by the employer, then the employee will pay income tax on the amount through PAYE.

 

 

Chancellor Rishi Sunak is set to unveil a raft of big-spending measures aimed at creating thousands of jobs.

Companies will be paid £1,000 bonuses by the government to hire young people as trainees, the chancellor will announce as part of his rescue plan for Britain's post-coronavirus economic recovery.

In a hotly anticipated "emergency budget" on Wednesday, Rishi Sunak will unveil a raft of big-spending measures aimed at creating thousands of jobs to replace those lost during the COVID-19 pandemic.

The bonuses for employers who hire young people into training programmes in England will come in a £111m scheme which will pay direct government subsidies for taking on trainees for the first time.

Chancellor Rishi Sunak
Image:Chancellor Rishi Sunak will unveil a raft of big-spending measures on Wednesday

The money will be available for trainees aged 16 to 24 and will be capped at 10 jobs per employer, or £10,000.

Employers will be able to determine how to spend the £1,000, as long as it directly or indirectly contributes to training.

 
Advertisement

The scheme, in which thousands of young people will be given the skills to secure a job, will be part of the largest-ever expansion of traineeships the country has ever seen, the chancellor is expected to tell MPs on Wednesday.

Unveiling his plan to help kick-start the economy, following on from Boris Johnson's "New Deal" speech last week, Mr Sunak will say he aims to give more 16 to 24-year-olds "the tools they need to enter the world of work".

The government is concerned that many of the people who have lost their jobs during the pandemic are in industries such as hospitality where the bulk of employees are under 30 and many under 25.

Sky's economics editor Ed Conway dives into the data surrounding the government's latest spending pledge.
 
 
Is £5bn enough to save the economy?

The chancellor's statement this week is not officially a budget and there will not be the photo outside 11 Downing Street with the famous red box, but it will be a response to huge job losses and dire forecasts of mass unemployment.

As part of the new traineeships, which will last from six weeks to six months, young people will receive maths, English and CV writing training as well as guidance about what to expect in the workplace.

They will also receive a high-quality work placement of 60 to 90 hours.

Government vows £1.57bn lifeline for arts - but no plans to resume live shows

Government vows £1.57bn lifeline for arts - but no plans to resume live shows

 

Evidence shows that three-quarters of 18 to 24-year-olds who complete traineeships move on to employment or further study within 12 months.

The expanded scheme will be in place in England from September.

The government will also provide £21m to the devolved administrations in Scotland, Wales and Northern Ireland through the Barnett formula so they can follow suit.

Coronavirus UK tracker: How many cases are in your area – updated daily

Coronavirus UK tracker: How many cases are in your area – updated daily

 

A Whitehall source said: "Young people's employment prospects are expected to be disproportionately affected by the economic fallout of coronavirus.

"Expanding traineeships will be part of a wider package to support young people and to ensure they have the skills and training to go on to high quality, secure and fulfilling employment."

But according to the UK's biggest construction trade union, the PM's promise to "build, build, build" the UK back to economic health will not work unless urgent action is taken to avert a crisis in skills and apprenticeships.

 

:: Listen to the Daily podcast on Apple PodcastsGoogle PodcastsSpotifySpreaker

Unite claims a lethal combination of employers' long-standing reluctance to invest in apprentices, widespread redundancies because of the pandemic, and a reluctance to recruit new entrants is likely to result in 20,000 fewer apprentices this autumn, vastly down from the 47,284 in England last year.

"The prime minister's pledge to 'build, build, build' the country's way out of this pandemic-caused crisis won't get very far without a workforce," said Unite's assistant general secretary Gail Cartmail.

Matt Hancock says laws may be brought in to enforce Leicester lockdown
 
 
Hancock: 'We have to build our way out'

"Construction apprenticeship training is in danger of collapsing as an after effect of the pandemic, which is why we're calling on the chancellor to make it clear when he announces his plans for recovering the economy this coming week that our young workers will be given a chance of a career in construction," Ms Cartmail added.

"At the moment, for every one good quality apprenticeship, there are 1,000 applicants. Young workers have to scale this huge mountain so it is only right that they have the chance to complete their apprenticeship and have a job at the end of their training."

 

 

Choose how and when you can delay making your second payment on account for the 2019 to 2020 tax year.

 

You have the option to defer your second payment on account if you’re:

  • registered in the UK for Self Assessment and
  • finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus

You can still make the payment by 31 July 2020 as normal if you’re able to do so.

HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.

You will still need to submit your Self Assessment tax return to HMRC on time.

If you choose to defer

You do not need to tell HMRC that you’re deferring your payment on account.

Choosing to defer will not stop you from being entitled to other coronavirus support that HMRC provides.

You must make your second payment on account on or before 31 January 2021 if you choose to defer. Other payments you may have to make by this date include any:

  • balancing payment due for the 2019 to 2020 tax year
  • first payment on account due for the 2020 to 2021 tax year

You can check payments you need to make towards your next tax bill by signing in to your online account.

If you want to pay in full

You can pay your second payment on account bill in full any time between 31 July 2020 and 31 January 2021 using the online service.

If you want to pay in instalments

You need to contact HMRC if you already have overdue tax which you’re paying through a Time to Pay instalment arrangement and want to include your second payment on account in that arrangement.

If you do not have other overdue taxes, you can make your payment in instalments any time between now and 31 January 2021 by setting up a budget payment plan.

Payments made by Direct Debit

If you choose to defer and normally make your payments on account by Direct Debit, you should cancel your Direct Debit through your bank as soon as possible so that HMRC will not automatically collect any payment due. You can cancel online if you’re registered for online banking.

After the deferral ends

The usual interest, penalties and collection procedures will apply to missed payments.

How to get help

If you’re still struggling to pay your tax bill by 31 January 2021, or you’re experiencing other financial difficulties you can contact HMRC’s Time to Pay service.

Get help online

Use HMRC’s digital assistant to find more information about the coronavirus support schemes.

You can also contact the HMRC coronavirus helpline for help and advice.

Published 15 May 2020
 
 

 

‘One-size-fits-all’ view risks period of mass unemployment, says Anneliese Dodds

Labour has warned Rishi Sunak that the Treasury’s one-size-fits-all approach to ending wage subsidies risks a period of mass unemployment that will reverse much of the good done by the furlough.

Writing for the Guardian, the shadow chancellor, Anneliese Dodds, called on Sunak to use his planned summer statement next month to extend financial support to vulnerable sectors beyond the October deadline for winding up the scheme.

Dodds said it was a mistake for the chancellor to insist that all businesses start to make a contribution to the employment costs currently being met by the state, regardless of whether they were able to open or not.

“Mass unemployment is like an invasive perennial – once it has taken hold, it can take years to fix. Better to prevent it ever taking root.”

Figures released by HMRC this week showed that the number of jobs furloughed in the week to 21 June rose by 100,000 to 9.2m. Almost £23bn has been claimed by the 1.1m employers that have taken advantage of the scheme, which closes for new entrants on 1 July.

Dodds said: “The government’s one-size-fits-all approach to support schemes makes no sense – it treats industries that can open today and industries that can’t exactly the same.

“We have repeatedly urged the chancellor to adopt a sectoral approach to economic support. This should include introducing the employer contribution at a slower rate for those sectors which have been hardest hit – not least because the promised sector deals are still yet to materialise.”

Sunak announced in March that the government would pay up to 80% of the wages of furloughed staff up to a maximum of £2,500 a month. He has since extended the length of the scheme but said it would begin to be phased out in August. The chancellor previously said that sectors such as hospitality and retailing – which were hardest hit by the lockdown – had already received targeted government support through grants and VAT and business rates holidays.

Labour has generally been supportive of the government’s emergency measures to support activity and jobs through the lockdown but has now started to toughen up its approach.

Dodds said: “The UK government was too slow to get PPE to hospitals and care homes and too slow to put in place its test, track and trace system – which was once billed as “world-beating” but currently looks barely fit for purpose. We cannot afford for the government to now be asleep at the wheel when red lights are flashing on the economy’s dashboard. The government can no longer ignore the warning signs. It must act to save jobs.”

Ministers believe the gradual easing of lockdown restrictions will provide a substantial boost to the economy but Dodds said there was a need for a “back to work budget”. Sunak’s approach to the furlough, she added, would “simply lead to more people losing their jobs – and mean much of the good work done by furlough will have been undone”.

The shadow chancellor said tailored support was needed for groups with specific challenges such as young people, older people and disabled workers – and also called for an early warning system for major employers planning redundancies.

Dodds said Britain was lagging behind Germany, which had come up with a package focused on promoting the environmentally friendly, work-rich industries of the future.

 

 
 

If you're an employer, find out if you can use the Coronavirus Statutory Sick Pay Rebate Scheme to reclaim employees' coronavirus-related Statutory Sick Pay (SSP).

The online service you’ll use to reclaim Statutory Sick Pay (SSP) will be available from 26 May 2020.

The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the SSP paid to current or former employees.

The repayment will cover up to 2 weeks starting from the first qualifying day of sickness, if an employee is unable to work because they either:

  • have coronavirus (COVID-19) symptoms
  • cannot work because they are self-isolating because someone they live with has symptoms
  • are shielding and have a letter from the NHS or a GP telling them to stay at home for at least 12 weeks

You can claim for periods of sickness starting on or after:

  • 13 March 2020 - if your employee had coronavirus or the symptoms or is self-isolating because someone they live with has symptoms
  • 16 April 2020 - if your employee was shielding because of coronavirus

The weekly rate was £94.25 before 6 April 2020 and is now £95.85. If you’re an employer who pays more than the weekly rate of SSP you can only claim up to the weekly rate paid.

Use the SSP calculator to work out the actual amount.

Employees do not have to give you a doctor’s fit note for you to make a claim. But you can ask them to give you either:

  • an isolation note from NHS 111 - if they are self-isolating and cannot work because of coronavirus
  • the NHS or GP letter telling them to stay at home for at least 12 weeks because they’re at high risk of severe illness from coronavirus

Who can use the scheme

You can use the scheme as an employer if:

  • you’re claiming for an employee who’s eligible for sick pay due to coronavirus
  • you have a PAYE payroll scheme that was created and started on or before 28 February 2020
  • you had fewer than 250 employees on 28 February 2020

You can claim back from both the Coronavirus Job Retention Scheme and the Coronavirus Statutory Sick Pay Rebate Scheme for the same employee but not for the same period of time for that employee.

Your claim amount should not take you above the state aid limits under the EU Commission temporary framework. This is when combined with other aid received under the framework. The maximum level of state aid that a business may receive is €800,000. There is a lower maximum for agriculture at €100,000 and aquaculture and fisheries at €120,000.

The scheme covers all types of employment contracts, including:

  • full-time employees
  • part-time employees
  • employees on agency contracts
  • employees on flexible or zero-hour contracts
  • fixed term contracts (until the date their contract ends)

We will let you know when the scheme will end.

Connected companies and charities

Connected companies and charities can also use the scheme if their total combined number of PAYE employees was fewer than 250 on the 28 February 2020.

Get ready to claim

The online service you’ll use to reclaim Statutory Sick Pay (SSP) will be available from 26 May 2020.

To use the online service you will need the Government Gateway user ID you got when you registered for PAYE Online. If you did not register online you will need to enrol for the PAYE Online service.

Find your lost Government Gateway user ID if you do not have it.

If you use an agent who is authorised to do PAYE online for you, they will be able to claim on your behalf.

If you’re unable to claim online an alternative way to claim will be available. We will update this page with more information soon.

What you’ll need

You’ll need:

  • your employer PAYE scheme reference number
  • contact name and phone number of someone we can contact if we have queries
  • UK bank or building society details (only provide bank account details where a Bacs payment can be accepted)
  • the total amount of coronavirus SSP you have paid to your employees for the claim period - this should not exceed the weekly rate that is set
  • the number of employees you are claiming for
  • the start date and end date of the claim period

You can claim for multiple pay periods and employees at the same time. The start date of your claim is the start date of the earliest pay period you’re claiming for. The end date of your claim is the end date of the most recent pay period you’re claiming.

Records you must keep

You must keep records of SSP that you’ve paid and want to claim back from HMRC.

You must keep the following records for 3 years after the date you receive the payment for your claim:

  • the dates the employee was off sick
  • which of those dates were qualifying days
  • the reason they said they were off work - if they had symptoms, someone they lived with had symptoms or they were shielding
  • the employee’s National Insurance number

You can choose how you keep records of your employees’ sickness absence. HMRC may need to see these records if there’s a dispute over payment of SSP.

Other help you can get

We are receiving very high numbers of calls. Contacting HMRC unnecessarily puts our essential public services at risk during these challenging times.

Get help online

Use HMRC’s digital assistant to find more information about the coronavirus support schemes.

Business Rates grant

The application for Business Rates grant for Leicester City Council is now open. It's very simple; just click the link (below), fill in your details, attach the Business Rates statement, photo ID & bank statement and click submit! For other cities/boroughs, please speak to us if you're not sure.
https://www.leicester.gov.uk/your-council/coronavirus/coronavirus-business-support-grant-funding/


Furlough scheme FAQ's
Company Directors

As office holders, salaried company directors are eligible to be furloughed and receive support through this scheme.

Where
furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so provided they do no more than would reasonably be judged necessary for that purpose, i.e. they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.

Written Furlough Agreements


Employers must have signed written agreements of
furlough leave with employees and these must be kept for 5 years. Our previous email included the draft letter you can send to your employees.

Deferred Payments

As the first
CJRS refunds are not expected until 30 April 2020, this may put enormous pressure on those businesses who are operating with very limited cash flow. If your business is struggling to pay your staff, we advise you to have open and honest conversations with your employees as soon as possible, to ask if you can defer payments. Our previous email included the draft letter you can send to your employees. If you genuinely require to defer their payments, you will need to add a clause for deferred salary payments. Speak to us if you're not sure how to do this.

Holiday Accrued During Furlough and Sick Leave


Although the
employee is not working, the terms of employment will continue and they will continue to accrue holiday during both furlough and sick leave.

Holiday Pay For Furlough

HMRC have confirmed it is possible to take annual leave when on furlough and that it must be paid at full pay. For a furloughed employee on annual leave, the employer can recover 80% of the employees basic salary through the CJRS, but the employer will need to top that up to 100% of normal remuneration including commission and bonuses.

Bank Holidays

Following the recent Easter bank holiday, when
bank holidays fall during a period of furlough leave and the contract states annual holiday must be taken on a bank holiday, the employee should receive full pay for the bank holiday.

If an
employee doesn’t work on a bank holiday (e.g. a part-timer who doesn’t work a Monday for example), there will be no impact on them due to the bank holiday.  They will not be required to use holiday entitlement and of course won’t be paid for this day.

Statutory Sick Pay for Furlough

Sick leave and furlough leave cannot be taken at the same time. If an employee is on sick leave, they can be furloughed once their period of isolation has expired and immediately furloughed. The CJRS cannot be used to supplement SSP for employees who are off sick with coronavirus or are in self-isolation in line with government guidelines.

Furlough Employees Self-Isolating for 12 Weeks

Employees who have been advised to self-isolate for 12 weeks and require shielding (due to serious health conditions) can be furloughed and do not have to be placed on sick pay.

Employees whose pay varies

If the employee has been employed for 12 months or more, you can claim the highest of either the:

  • same month’s earning from the previous year
  • average monthly earnings for the 2019-2020 tax year

If the employee has been employed for less than 12 months, claim for 80% of their average monthly earnings since they started work until the date they are furloughed.

If they have been employed for less than a month, work out a pro rata for their earnings so far, and claim for 80%.

Furlough scheme cut-off date extended to 19 March

Eligibility cut-off date for extended to 19 March 2020. To qualify and to protect against fraudulent claims, individuals originally had to be employed on February 28 2020. Now employers can claim for furloughed employees that were employed and on their PAYE payroll on or before 19 March 2020. This means that the employee must have been notified to HMRC through an RTI submission notifying payment in respect of that employee on or before 19 March 2020.

 
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