Under the job retention scheme employers can claim 80% of their furloughed staff wages back, HMRC are still working on the portal but once it is ready the following information will be needed:
- The PAYE reference number
- Number of employees being furloughed
- The start and end date of the claim
- Amount to be claimed
- Company bank account details
- Contact name
- Phone number
The amount that is being claimed will need to be calculated and could be audited by HMRC. Claims can be back dated from the 1st March, 2020. If you are not topping up the employees pay to 100% then the wages should be reduced to 80% before they are paid.
Furloughed employees must be furloughed for a minimum of 3 consecutive weeks and taken off furlough on their return to work. Even though employees can be furloughed numerous times it must be for a minimum of 3 weeks each time.
Claims will be checked by HMRC.
The employees pay
The employees will still have to pay the normal taxes from their wages as well as pension contributions. The employer is still required to fulfill their obligations towards the employees pension.
Which employees can be claimed for under the job retention scheme?
In order to claim for furlough the employees must have been on the PAYE payroll on or before the 28th February 2020. Newer employees could be eligible for Universal credit and will need to make their claim on their own behalf.
Employees can be full-time, part-time, agency, flexible or on zero hours contract. Foreign nationals are also able to be furloughed.
Whilst on furlough employees are not allowed to take on any work on behalf of the company.
Employees of sick or self isolating
It is not possible to claim for an employee who is on sick leave or self isolating, instaed they are eligible for SSP. Thay can be furloughed and then claimed for once the sick leave has ended.
If you have further questions on the job retention scheme please contact us