Coronavirus Job Retention Scheme
Hot off the press!
We bring you the latest updates on policy and guidance that we have gathered in this week of giving payroll advice and answering queries!
Time to Pay
To delay your PAYENIC payments, we found the best time to call HMRC is 8am! The number is 0300 200 3835.
If you are up to date with your payment that went through in March for February's due amount, HMRC won’t be able to defer March PAYENIC due on 22nd April until after the 7th up to the 19th because HMRC can only defer a payment they can see due and the March RTI files won’t update until after the 7th.
HMRC will ask the following:
- The caller must be the nominated contact for the business – they will be asked the following in this order:
- Accounts office reference
- Company name
- PAYE reference
- Their name and position in the business
***Important*** If you are a client that engages Pay Check to send your PAYENIC payment by BACS to HMRC on your behalf, you must tell us of your intention to delay payment by 10am on Wednesday 8th April so we can remove your file from our BACS run. You can tell us through this form:
If you tell us after this date we may have sent the BACS by forward processing and there may be a fee of £45 for us to be able to pull the file from BACS.
How to calculate Furlough pay for employees who are part time, have been on SMP/SPP/ShPP or sick pay
If an employee is on variable pay or has had statutory payments like SMP during the year then the employer should pay the higher of the same month in the previous year or an average of the past 12 months (up to max of £2500). https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme
Change to SSP for COVID-19 sickness or isolation
It has been confirmed yesterday that this should only be paid if a Period for Incapacity for Work (PIW) has been met i.e. the employee was off work for 4 days or more. Waiting days do not need to be applied. We do not yet know if SSP paid in March for less than 4 days will have to be reversed, or simply won’t be reimbursed to the employer. https://www.gov.uk/guidance/statutory-sick-pay-manually-calculate-your-employees-payments?utm_source=b868f1b3-b0ee-407c-afe4-894a552aa6dc&utm_medium=email&utm_campaign=govuk-notifications&utm_content=daily
For Clients Trading as Pubs
You may wish to know about this new not for profit platform which enables pubs to sell click and collect food and drink items to their local community – some of you might like to use it to check if your locals are providing services too (you have to search by pub name really, postcode doesn’t seem to work)... https://www.mypubshop.com/index.php?dispatch=starstock_frontdoor.splash
***Important - Clients applying for Coronavirus Job Retention Scheme must have a UK bank account***
Clients who send funds to the client account because they have overseas bank accounts will need to have a UK bank account to apply for the Coronavirus Job Retention Scheme grants, they can only be paid by HMRC into UK bank accounts and we cannot accept this payment into our client account due to anti-money laundering regulations. https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
National Minimum Wage and National Living Wage for Furlough Employees
Employees are only entitled to the National Minimum Wage/National Living Wage for the hours they are working, therefore if paying 80% of wages to a furloughed worker takes their hourly rate below NMW/NLW this is acceptable as the employee is not physically working – same link as above.
Accruing Holiday Pay for Agency or Temporary Workers
According to the Recruitment & Employment Federation "HMRC guidance states that a worker’s contract and employment rights continue whilst they are on furlough. That would include the accrual of holiday leave and related pay. However, temporary workers accrue holiday according to time worked. If they have been furloughed by an agency, they cannot work for that agency and therefore cannot accrue holiday leave or pay during furlough leave. However if a temporary worker works elsewhere, they will accrue holiday leave and pay through that employer (or agency)".
Annual Leave Carry Over Easement
Rules on carrying over annual leave have been relaxed, untaken leave can be carried over for up to 2 years https://www.gov.uk/government/news/rules-on-carrying-over-annual-leave-to-be-relaxed-to-support-key-industries-during-covid-19
Employees on SMP & Furlough
If employees are on SMP they cannot be furloughed before the end of the SMP period, in any case you already receive at minimum 90% refund for this payment through your PAYENIC reconciliation
Complimentary Pensions and Benefits Advice
Our partner, Corporate Financial Advisor, Rebecca Dorrian @ Chase De Vere is kindly offering free advice and consultation to our clients:
“As we are supporting our existing clients with a variety of queries in relation to COVID-19, we confirm that as a trusted partner of PayCheck Ltd, we are happy to extend this support to PayCheck clients. We understand that you are used to receiving a comprehensive service from PayCheck and we want to extend this additional support to you during this difficult time. There will be no charge for this consultation.
Please contact me if you wish to discuss:
- Benefits for employees on furlough including around the payment of pension contributions
- Ideas for saving costs to help with cashflow
- Ancillary benefits available on group risk benefits and medical insurance plans that might help your employees
- Anything else that you need support with during this time”
Help with Cashflow and Financial Analysis from Our Partners - nGine Room
We are currently helping small to medium businesses with cashflows, saving money, future proofing and implementing HRMC new financial support packages. If you need help now or want to improve how you run your finances going forward please give us a shout. We are here and keen to help. We are not your normal accountancy firm. We are commercial finance people with practical advice and support.
Contact Selwyn Pye - Founder
Business Impact from COVID-19
And finally, we are trying to gather as much information from our clients as possible in order to serve them best - if you have 30 seconds we would really appreciate you completing this super quick survey on your intentions over the next few weeks
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