CORONAVIRUS UPDATE – 26 March 2020
We now have a little more information regarding ‘Furloughed Workers’ following yesterday’s update.
It now seems to be widely accepted that HMRC, via their online portal, will ask that you make the 80%
payments, report it at each pay period and then reclaim it through the system they are creating.
In this circumstance RTI will still need to be submitted and all appropriate PAYE and NIC deductions
will likely need to be made at the time. Base salary is expected to be included only.
It is expected that HMRC will then reimburse you after the RTI submission as they will then hold the
information required to do so. This will likely begin in April as they state that the first grants will be
paid within weeks.
As a precaution, you should still withhold making these 80% payments until told to do so by HMRC as
they may be under no obligation to reimburse you retrospectively. This is even though they will
If you are worried about cash flow in the meantime, HMRC recommend that you take advantage of
the Coronavirus Business Interruption Loan.
Remember, it is the employer who decides whom they wish to furlough, but this must be done in
consultation with the employee who may then refuse to be designated. If they do however accept,
please get in touch with us at SHR Group so that we can make the necessary contractual arrangements,
as required under employment legislation.
The scheme is intended to avoid redundancies but if these become necessary, you must follow due
procedures so don’t forget to consult with us first.
The Coronavirus Job Retention Scheme will cover the cost of wages backdated to March 1st and is
initially open for 3 months but will be extended if required. Once you are informed that the new online
portal is live, submit information to HMRC regarding the employees that have been furloughed and
their earnings (HMRC will set out further details on the information required).
Which Employees are Eligible?
All UK employees who are paid through the payroll irrespective of business size. This includes agency
workers, apprentices, charities, public sector and private sector.
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