Our team are here and ready to support you
Payroll is a vitally important function within a business and never more so now that the Government has confirmed that it will be paying furloughed workers* up to 80% of their wages through reimbursement via HMRC.
During these uncertain times, businesses must know that they can rely on the support of their payroll advisers to keep employees paid and their records up to date in line with the Government’s latest measures.
As the Department for Education has confirmed that payroll professionals are classified as key workers, we wanted to assure you that our team are standing by to help you deal with the constantly changing complexities of payroll during this crisis.
If you need payroll advice during these challenging times our team are available and ready to help, so please contact us.
*Under the new Coronavirus Job Retention scheme, government grants will cover up to 80% of the salary of PAYE employees who would otherwise have been laid off during this crisis. The scheme, open to any employer in the country, will cover the cost of wages backdated to 1 March 2020 and will be open before the end of April. It will continue for at least three months, and can include workers who were in employment on 28 February. Employees still working, full time or part time or on shorter hours will not qualify.
To claim under the scheme employers will need to:
- designate affected employees as ‘furloughed workers’, and notify employees of this change. Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation; and
- submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal. HMRC will set out further details on the information required.
- HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month.
While HMRC is working urgently to set up a system for reimbursement, we understand existing systems are not set up to facilitate payments to employers. Businesses that need short-term cash flow support, may benefit from the VAT deferral option and may also be eligible to apply for a Coronavirus Business Interruption Loan.