Updates to the Job Retention Scheme
To confirm you can claim for furloughed employees that were on your PAYE payroll on or before 19th March 2020, that were notified to HMRC on an RTI submission. Employees on payroll that were employed as of 28th February 2020, but were made redundant or stopped working after that and prior to 19th March 2020, can also qualify for the scheme if the employer re-employs them and puts them on furlough.
We have now been updated on some of what can be included in the claim for the Job Retention Scheme grant.
In summary employers can claim apart from wages, the below:
- Past Overtime
- Fees and compulsory commission payments.
What is still not included:
- Discretionary Bonus (including tips)
- Commission payments and non-cash payments.
- Non-monetary benefits including taxable Benefits in Kind.
- Salary Sacrifice Schemes (including pension contributions), that reduce an employee’s taxable pay.
Where the employer provides benefits to furloughed employees, this should be in addition to the wages that must be paid under the terms of the Job Retention Scheme.
For further information on:
- Apprentice Pay
- Apprenticeship levy and student loan
- National Minimum wage
Please follow this link to the Government Guidance:
Please note: the government portal is not yet accessible and we await confirmation of the exact date this will be available. As soon as it is, we will provide further details.
Our payroll team are dealing with an unprecedented amount of calls at the moment so please bear with them if you are waiting for a call back. They are also dealing with the end of the tax year paperwork so where your query can be answered by another member of the team, we would recommend you speaking with your client manager in the first instance before calling the payroll team. Please be assured that your queries will always be answered.
There have been three main questions we’ve been focusing on when looking at the Job Retention Scheme for directors:
1. Can directors be furloughed?
2. Does this cause a problem with National Minimum Wage?
3. Does this cause a problem with not having a contract?
After further clarification, our current understanding is that directors can be furloughed.
A director is not a “Worker” for the purposes of National Minimum Wage, as they do not have a contract of employment.
However, for furloughing purposes directors are included in the definition of employee (and employee and worker are not the same), therefore directors can be furloughed.
As a furloughed director, it is okay to continue with your statutory duties, e.g. filing accounts at companies house, but you must not work outside of the statutory duties. You cannot be marketing or continuing to try to generate income or future income for the business.
Directors who are furloughed are subject to all stipulations of the Job Retention Scheme.
Click here to see our most up to date COVID-19 Business Support Guide.