The Coronavirus Job Retention Scheme is going live on the HMRC portal on 20th April.
We caught up with Lucy Cohen, co-founder of Mazuma, the UK’s leading Online Accountants for small and micro businesses to find out what that means businesses need to do to be prepared:
Lucy writes that:
To claim, businesses will need:
- ePAYE reference number
- number of employees being furloughed
- the claim period (start and end date)
- amount claimed (per the minimum length of furloughing of 3 consecutive weeks)
- your bank account number and sort code
- your contact name
- your phone number
The calculation will need to be done in advance, including;
- 80% versus £2,500
- pro rata calculations
- min auto enrolment employer pension contributions
- employer National Insurance (excl. voluntary top ups)
- past overtime, fees and compulsory commission payments
Discretionary bonus (including tips) and commission payments and non-cash payments cannot be claimed.
Whatever you claim for the grant as gross pay, must be paid to the employees.
IMPORTANT – you may need to take action now
You must have:
- created and started a PAYE payroll scheme on or before 28 February 2020
- enrolled for PAYE online – this can take up to 10 days
- a UK bank account
Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.
VERY IMPORTANT – you may need to enroll for a PAYE online account. Do this now to avoid delays to your payments. You can do that here – https://www.gov.uk/paye-online/enrol
In the mean time, you can check the official guidance here.