CIPD Coronavirus webinar series

HMRC coronavirus advice for SMEs

23 June 2020

Welcome

Katie Jacobs, Senior Stakeholder Lead, CIPD

Katie Jacobs

Senior Stakeholder

Lead, CIPD

Gareth Cooper

Head of National

Insurance

Contributions &

NINO Policy,

HMRC

Today’s speakers

Rebecca Hutton

Communication

Lead – CJRS,

HMRC

Guy Walton

CJRS Policy Team,

HMRC

#StrongerWithCIPD

cipd.co.uk/memberbenefits

Covid-19 resources

NEW Well-being helpline

Employment Law helpline

Communities and branches

People Management

Knowledge and content

Free learning Careers support

Professional creditability

Financial support

Coronavirus Statutory Sick Pay (SSP) Rebate Scheme

Gareth Cooper, Head of National Insurance Contributions & NINO Policy, HMRC

6

Agenda• Scheme Aims

• Who can claim

• What can be claimed

• Making a claim

• Keeping records

• Q&A

7

Scheme Aims

8

Scheme AimsCompensate employers for costs of SSP up to a certain

threshold where an employee is:

• unable to work because they have symptoms of

coronavirus (COVID-19)

• incapable or work due to self-isolating in accordance

with official guidance

• shielding following receipt of letter from doctor or

health authority

9

Who can claim?

10

Who can claim?

Any employer in the UK can claim if it has 250 or fewer

employees registered for PAYE at 28 February 2020

This includes charities

The PAYE payroll must have been created and started on or

before 28 February 2020

11

What can be claimed

12

What can be claimed

Maximum of 2 weeks SSP for each employee, if the

employee was unable to work for a reason relating to

coronavirus (COVID-19)

Employers can claim retrospectively for any qualifying days

on or after 13 March 2020, or on or after 16 April if the

employee is shielding

The maximum number of employees that can be claimed

for is the number registered on the PAYE scheme at 28

February 2020

13

SSP rates

£95.85 per week from 6 April 2020

(£94.25 per week before that date)

The funding will cover up to 2 weeks’ SSP per eligible

employee. This is in line with the recommended isolation

period of 7 to 14 days.

Employers can claim for more than one period for a

single employee, but the combined claim can’t exceed 2

weeks.

14

Making a claim

15

Making a claim

The online service launched 26 May

Employers will need the Government Gateway user ID and

password

An agent authorised to do PAYE online for you will be able

to claim on your behalf

Employers will need to enrol for the PAYE online service if

you didn’t register online

16

Keeping records

17

Keeping records

Employers will need to keep records of:

• each period of incapacity for work for which a claim

for recovery was made (start and end dates)

• the reason for incapacity for work provided by the

employee

• the qualifying days in the period of incapacity

• the National Insurance number of the employee

Extension to the Coronavirus Job Retention Scheme and flexible furloughing

Rebecca Hutton, Communication Lead – CJRS, HMRC

19

About the scheme

This temporary scheme began on 1 March 2020 and

enables employers to furlough employees on 80% of their

current salary up to £2,500.

It will continue in its current form to 30 June 2020.

19

20

About the scheme

From 1 July, employers can:

• bring back to work employees that have previously been

furloughed for any amount of time and any shift pattern

• still claim the CJRS grant for their normal working hours

not worked

Only employees you have successfully claimed a previous

CJRS grant for will be eligible for further grants

20

21

About the scheme

The priority has always been to support people, protect

jobs, livelihoods and businesses through this crisis.

From 1 August, the level of the grant will be reduced each

month as more employees who are able to work can return

to work.

Employers will be asked to contribute towards the cost of

furloughed employees’ wages.

21

22

What’s changing?

The scheme will close to new entrants from 30 June 2020.

From 1 July, employers will only be able to claim for

employees who have previously been furloughed for at

least 3 consecutive weeks taking place any time between 1

March 2020 and 30 June.

The last day you could have furloughed an employee for

the first time was 10 June.

22

23

What’s changing?

From 1 July 2020, employers can bring furloughed

employees back to work, for any amount of time and on any

shift pattern, while still being able to claim the CJRS grant for

their normal hours not worked.

Employers will still be able to claim the furlough grant for the

hours employees who are flexibly furloughed don’t work,

compared to the hours they would normally have worked in

that period.

23

24

What’s changing?

For June and July, the government will continue to pay

80% of people’s salaries up to a cap of £2,500 a month.

From 1 August 2020, the level of grant provided through

the Job Retention Scheme will be reduced as people start

returning to work.

Employers will be asked to contribute towards the wages

costs of furloughed employees to ensure they continue to

receive at least 80% of their wages while on furlough.

24

25

What’s changing?

The number of employees you claim for in any claim period

starting from 1 July cannot exceed the maximum number of

employees you claimed for under any claim ending by 30

June.

25

26

Making a claim

Make a claim as you do now using the online service.

26

27

More than 100 employees on furlough

If you’re claiming for 100 or more furloughed employees,

you’ll need to upload a file (as .xls, .xlsx, .csv or .ods)

containing the following for each employee:

• full name

• National Insurance number

• payroll number (optional)

• furlough start date

• furlough end date (if known)

• full amount claimed

27

28

More than 100 employees on furlough

If you are flexibly furloughing any of these employees, you

will also need to include:

• hours they actually worked in the claim period

• usual hours worked in the claim period

28

29

Claims for any days before 1 July

Claims for any days before 1 July must end on or before 30

June.

This is the case even where an employee furloughed in

June continues to be furloughed full time in July.

For example, a previously furloughed employee can start a

new furlough period on 22 June which would have to

continue for at least 3 consecutive weeks ending on or after

12 July.

29

30

Use the calculator

This calculator can currently be used to work out what you

can claim for claim ending on or before 30 June for most

employees who are paid either regular or variable amounts

each pay period (for example, weekly or monthly).

The calculator can also be used to work out what you will

be able to claim for claim periods starting on or after 1 July.

30

31

Exceptions

The exceptions to this are if employees:

• returned from statutory leave such as maternity leave in

the last 3 months

• get director’s payments

• have been transferred under TUPE

• have been employed at separate times throughout the

year

• receive employer pension contributions outside of an

auto-enrolment pension scheme

• have an annual pay period

31

32

After you’ve claimed

You must keep a copy of all records for 6 years, including:

• the amount claimed and claim period for each employee

• the claim reference number for your records

• your calculations in case HMRC need more information

about your claim

• for employees you flexibly furloughed, usual hours

worked, including any calculations that were required

• for employees you flexibly furloughed, actual hours

worked

32

33

After you’ve claimed

You must also:

• tell your employees that you have made a claim and that

they do not need to take any more action

• pay your employee their wages, if you haven’t already

33

34

After you’ve claimed

You must pay the full amount you are claiming to your

employee with the usual PAYE deductions.

If you’re not able to do that, you’ll need to repay the money

back to HMRC.

The same applies in relation to employer NICs and pension

contributions you claim regarding your employee.

34

35

CJRS grant - June and July

The government will pay:

• 80% of wages up to a cap of £2,500

• employer National Insurance and pension contributions

Employers are not required to pay anything.

35

36

The government will pay 80% of wages up to

a cap of £2,500

36

3737

3838

3939

40

End of the scheme

The Coronavirus Job Retention Scheme will close on

31 October 2020.

You’ll have until 30 November to submit any claims that

start on or after 1 July 2020.

40

41

Tax treatment of the Coronavirus

Job Retention Grant

Payments received under CJRS must be included as

income in the business’s calculation of its taxable profits for

Income Tax and Corporation Tax purposes, in accordance

with normal principles.

41

42

Thank You

Questions

Please use the Q&A function to submit your questions

Please submit your questions for:

• Gareth Cooper, Head of National Insurance Contributions & NINO Policy, HMRC

• Rebecca Hutton, Communication Lead – CJRS Policy Team, HMRC

• Guy Walton, CJRS Policy Team, HMRC

#StrongerWithCIPD

cipd.co.uk/memberbenefits

Covid-19 resources

NEW Well-being helpline

Employment Law helpline

Communities and branches

People Management

Knowledge and content

Free learning Careers support

Professional creditability

Financial support

*New* Well-being Resources

• The resource provides:• Legal information

• Debt and financial information

• Manager consultancy and support

• Information on work and home issues

• Factsheets, advice, information and self-help tools

• Links to specialist support organisations

• A resources area with; programmes, videos, webinars, medical information and mini health checks.

• We’ve partnered with Health Assured to support members mental health and well-being

• Unlimited free 24/7 confidential telephone helpline, online portal & Health e-Hub app

Further information

NEW well-being helpline for CIPD members

CIPD coronavirus hub

CIPD community

Gov.uk/coronavirus