Now closed to new applicants
The Job Retention Scheme has been extended to 30 September 2021 following the announcement on 2 March 2021 2020 by the Chancellor.
In order to protect jobs in the long term, the government introduced the scheme to allow employers to claim a grant of 80% of an employee’s wages costs up to a limit of £2,500 per month. As part of the planned withdrawal of the scheme, whilst the employee will still be required to be paid 80% of their wages, employers will only be able to reclaim 70% of the employees’ wages for July 2021, reducing to 60% for August & September 2021.
To use the scheme, you will need to designate affected employees as ‘furloughed workers,’ and have notified your employees of this change. This is a change in their terms of employment; therefore, you should have followed the appropriate HR procedures and this must have been completed prior to the commencement of the furlough period.
The scheme applies to any entity (including domestic payroll schemes) for employees who were reported to HMRC on a payroll submission (known as a RTI submission) on or before 2 March 2021.
The grant is available for all types of employees including:
- Full time employees
- Part time employees
- Company Directors
- Employees on agency contracts
- Employees on flexible or zero hours contracts
As the calculation of the amount you can pay and claim are complex, HMRC have released detailed guidance on how to calculate the amounts payable and hours (for flexible furlough), please see the government guidance for the full details on the scheme and how to calculate the furlough pay.
HMRC have produced a calculator to help you calculate the amount you can claim – see Coronavirus Job Retention Scheme calculator
PLEASE NOTE THAT YOU ONLY HAVE UNTIL 14TH OF THE FOLLOWING MONTH TO MAKE A CLAIM FOR THE PRECEDING CALENDER MONTH
In order to make a claim, click here and you will need the following information to make the claim:
- to be registered for PAYE online or if you have a payroll agent, they can submit the claim for you
- your employer PAYE reference number
- the number of employees being furloughed
- National Insurance Numbers for the employees you want to furlough
- Names of the employees you want to furlough
- Payroll/works number for the employees you want to furlough (optional)
- your Self-Assessment Unique Taxpayer Reference or Corporation Tax Unique Taxpayer Reference or Company Registration Number
- the claim period (start and end date)
- amount claimed (per the minimum length of furloughing of 3 consecutive weeks)
- your UK bank account number and sort code
- your contact name
- your phone number
You will have to calculate the amount to claim; however, HMRC will retain the right to retrospectively review and audit the claim. The claim can be made based on the amounts in your payroll and should be made either shortly before or after running your payroll. This is not necessarily the payment date, as you can calculate your payroll and submit a claim for up to 14 days in advance in order to allow you to receive the grant prior to paying the wages if necessary. HMRC will process and pay the claim within 6 days of submission, provided they do not raise any issues with the claim.
If you use a payroll provider and they are authorised to deal with your payroll affairs with HMRC, they will be able to make a claim on your behalf. IF YOU PREPARE THE PAYROLL YOURSELF OR WISH TO SUBMIT THE CLAIM YOURSELF YOU MUST BE REGISTERED FOR PAYE ONLINE; therefore, if you are not registered you must register first at https://www.gov.uk/paye-online/enrol
- Check if you can claim for your employees’ wages through the Coronavirus Job Retention Scheme
- Work out 80% of your employees’ wages to claim through the Coronavirus Job Retention Scheme
- Claim for wages through the Coronavirus Job Retention Scheme
- HMRC Examples of how to calculate your employees’ wages and furloughed hours
- Coronavirus Job Retention Scheme calculator
- Register for PAYE Online
- Government Guidance for Employers
- Government Guidance in respect of layoffs and short time working
- Business Support Government Site
- ACAS – Employment Advice