Coronavirus (COVID-19) – September Update
1st September 2020 – Furlough update
As from 1 September, the government will pay 70% of wages/salary up to a cap of £2,187.50 for the hours the employee is on furlough.
Employers will pay ER NICs and pension contributions and top up employees’ wages/salary to ensure they receive 80% of their wages/salary up to a cap of £2,500, for time they are furloughed
Coronavirus (COVID-19) – August Update
1st August 2020 – Furlough update
As from 1 August, the government has made changes to the furlough job retention scheme. They will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.
Coronavirus (COVID-19) – July Update
1st July 2020 – Flexible Furloughing
From 1st July 2020 you will now have the flexibility to bring back previously furloughed employees to work part-time. The government will still pay 80% of wages for any of their normal hours they do not work up until the end of August. But you the employer will need to pay the hours they work for you.
You can decide the hours and shift patterns that your employees will work. This means that employees can work as much or as little as your business needs, with no minimum time that you can furlough staff for.
Changes to the Coronavirus Job Retention Scheme (CJRS)
The scheme will close to anyone who hasn’t been furloughed for 3 weeks by 30th June. If you intend to furlough an employee who hasn’t been furloughed before, you will need to agree that with them and start their period of furlough on or before 10th June. This is the last day on which someone who has never been furloughed before can start a period of furlough and qualify for the scheme. This ensures the minimum 3 week period is complete by 30th June.
You have until 31st July to make any furlough claims for any periods up until 30th June.
Making changes to over-claimed furlough claims
If you have made an error in a CJRS claim that means you have received too much money, you must pay this back to HMRC. HMRC have updated their system so you can tell them if you have over-claimed in a previous claim. When you apply you will be asked if you need to reduce the amount to take account of a previous error. Your new claim amount will be reduced to reflect this. If you have made an error and do not plan to submit further claims, HMRC are working on a process that will allow you to let them know.
The Coronavirus Statutory Sick Pay Rebate Scheme is now live on GOV.UK.
If you are an employer with less than 250 staff, you can now claim for coronavirus-related Statutory Sick Pay (SSP).
Holiday when on furlough
Workers continue to accrue holiday whilst on furlough and can take holiday without it disrupting the Coronavirus Job Retention Scheme (CJRS). Employers can require staff to take holiday if they give enough notice to the worker, which is double the length of the holiday. Holiday pay should reflect what they would have earned if they had been at work and working. Where this calculated rate is above the furlough pay, the employer must pay the difference.
Support for staff and businesses affected by Coronavirus
The budget unveiled a £30 billion package to support the economy through the COVID-19 outbreak. SSP will now be available for eligible employees diagnosed with COVID-19 or for those who are unable to work because they are self-isolating. SSP will be payable from day one instead of day 4. The government will allow small and medium-sized businesses (less than 250 employees) to reclaim this SSP for up to 2 weeks. Employers should maintain records of staff absences, but employees will not need to provide a GP fit note. The government will work with employers over the coming months to set up the repayment plan as soon as possible.
Coronavirus (COVID-19) – Job Retention Scheme
HMRC have set up a Job Retention Scheme, it’s for UK employers who need support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. You will need to declare which employees this would affect and these would be declared as “furloughed workers”.
There will be an online HMRC portal to upload the employees information and at the moment there is no information on this portal yet. It appears HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. They are urgently working to set up a system for reimbursement.
At the moment it’s not been confirmed when the portal will be open and when HMRC will be able reimburse the employer. We have seen on several websites the scheme can be back-dated to 01.03.20, but we are not sure that is 100% correct. There is a short-term aid as part of the ‘Coronavirus Business Interruption Loan Scheme’ which they advise you will need to talk to your bank about.
You can find our more information from the UK Gov website at this link:
As soon as we know anything else we will let you know.
New employers have an instant start date for auto-enrolment duties
Any new employers that set up their business from October 2017 will not have a staging date, so their AE duties start as soon as they take on their first member of staff. Employers with instant duties will also need to complete a declaration of compliance within 5 months of their duties start date.
Automatic enrolment changes
On 6th April 2018, all employers will be required to increase the minimum contribution from the current level of 2% of qualifying earnings to 5%. Employers must contribute at least 2%.
No Employment Allowance for single director companies
From April 2016, single director companies will not be able to claim the Employment Allowance as it goes contrary to the policy of encouraging employers to employ more employees when these companies will not be doing so. This is on going for subsequent tax years.
PILON’s = Payments in lieu of notice
From 6th April 2018, all payments in lieu of notice, whether contractual or non-contractual – will be fully subject to a charge of tax and class 1 NICs.
This rule change is intended to end the confusion regarding the treatment of PILON’s that existed before 6th April 2018.
The change introduces the concept of ‘post-employment notice pay’ which represents the amount of basic pay the employee will not receive because their employment was terminated without full or proper notice given.
On 25th May 2018, the General Data Protection Regulation (GDPR) will be implemented in the UK. It will apply to personal data processed within the EU and to organisations outside the EU that supply goods and services to individuals within the EU. It is no longer adequate to say you comply with the regulations, you will be required to demonstrate it and appoint a data protection officer within your organisation, no matter how small. Transferring information by email will no longer be acceptable, unless it is encrypted.
Payrolling Benefits in Kind
PAYE legislation is changing. If you intend to or already payroll benefits and expenses you must register them with HMRC before 6th April 2018 using their new online Payroll Benefits in Kind (PBIK) service for 2018-2019 tax year. If you use this service and tax your employees’ benefits and expenses through payroll you won’t have to report them on a P11D. This will be on going for subsequent tax years i.e. you need to register before the start of the tax year.
Student Loan Deductions
From 6th April 2016 there will be an additional loan deduction – the original Student Loan will be known as Plan Type 1 with an Earnings Threshold of £17495.
The new Loan type will be Plan Type 2 with an Earnings Threshold of £21,000. P45 will not be changed but a revised Starter Checklist will ask the questions on this – if employee doesn’t know which type they are paying then employers must use Plan Type 1 until HMRC inform otherwise. Student Loan % = 9.
All dispensations cease on the 5th April 2016 and are replaced by Expenses exemption except for Benefits which are payrolled and detailed in the in the Payrolling Benefits in Kind section. Employers need to decide what does not need to go on a P11D as a business expense and ensure they have an expense policy.
Payrolling Benefits in Kind 2016/17
Optional for employers to decide i f t hey wish to payroll t heir Benefits in Kind (BIK) for the 2016/17 Tax Year. All BIK’s can be payrolled apart from Living Accommodation, Credit Cards & Vouchers, and Beneficial Loans. Employers must have registered with HMRC before 5th April 2016 in order to do this for the 2016/17 Tax Year.
Any current dispensation given by HMRC, to payroll BIK will cease on the 5th April and in order to continue employers will need to register with HMRC before the 5th April 2016. Once registered, employers can choose which benefits to payroll and which employees to exclude as they could be Long Term sick, Mat leave or on sabbatical with no pay or employee does not wish to have benefit payrolled.
Please inform your payroll contact if you decide to do this before pay period 01 of 2016/17 commences. This will mean no P11D or P46 Car for such employees in respect of 2016/17 onwards.
Child Care Vouchers
From early 2017 (date to be announced) no-one can enter into a CCV scheme. There will be a new Tax Free Childcare scheme which will not impact on employers. Where for every 80p the parents put into an account the Government will put in 20p.
National Living Wage
April 2016 April 2017 Adult rate (25 and over) £7.20 TBA