At this time of unprecedented challenge, employers will have many concerns, from issues around health and safety in the workplace (where this remains open), to how best to facilitate homeworking. Please do not hesitate to contact us for advice on these or any of the areas outlined below.
Coronavirus Job Retention Scheme (JRS)
Recent changes to JRS extend the scheme until the end of October, and provide an option for flexible furloughing from 1 July. From 1 August, financial support from the government will gradually reduce. There are now some key dates to watch: these could impact you if you haven't yet used JRS, or if you have used JRS and have additional staff still to furlough. JRS closes to new entrants from 30 June, but more critically, 10 June is the last date by which you can put an employee on furlough for the first time.
From 1 July, you can bring furloughed staff back to work part-time, paying them yourself for whatever hours are worked, and deciding those hours between you. Note, however, that any new flexible furlough arrangement must be agreed, and confirmed in writing. JRS can still be used for normal hours not worked, and if you prefer, staff can still be left on furlough.
From 1 August, employers will start to bear further costs, but until then, JRS allows employers to claim up to 80% of furloughed workers' wages, to a maximum of £2,500 per worker per month.
HMRC's has an online application portal for JRS claims and this calculator can be used to work out how much can be claimed bit.ly/2VolMl2.
Keep the calculations used as the basis of your claim. You are also advised to print the final confirmation screen, or note the claim reference number, because HMRC will not send an email confirmation. HMRC will check claims and has the right to audit claims retrospectively. It advises that payments may be withheld, or need to be repaid in full, if claims are found to be based on dishonest or inaccurate information, or found to be fraudulent. An online portal for employees and the public to report suspected cases of fraud has been set up.
Making best use of the JRS
Furlough is designed with some flexibility, giving the option to take staff off furlough, have them return to work and then refurlough them. This can be done multiple times, though a three-week minimum applies to any furlough period before 30 June. Judicious use of the scheme provides the potential to start gearing up again for business. Whilst on furlough, staff are debarred from carrying out work that generates revenue for your business, but timely switching between furlough and work, or even rotating staff on furlough, may prove useful.
To recap, furlough is a formal process, bringing employment law issues to consider. To be eligible, staff must have been on your payroll on or before 19 March 2020, and have been notified to HMRC on an RTI submission on or before that date. There are also some provisions for staff made redundant early in the pandemic, who are re-employed and furloughed. A claim under JRS can only be made from the date at which an individual's furlough begins.
We are happy to advise further, to support you through an application, or to submit your claim if authorised to act on your behalf for PAYE matters.
Statutory Sick Pay Rebate
The rebate provides a refund of up to two weeks' Statutory Sick Pay (SSP) for employees eligible for SSP because of coronavirus. Employers with fewer than 250 employees at 28 February 2020, with a PAYE payroll scheme created and started on or before that date, are eligible to claim. You can find out more here bit.ly/3eFQk8t.
The rebate counts as 'State Aid' and any claim is therefore potentially capped, with lower limits applying to agriculture, aquaculture and fisheries. Businesses receiving coronavirus-related State Aid must declare they were not in difficulty before 31 December 2019. We are happy to advise further here.