Great! Chancellor Rishi Sunak has extended the Coronavirus Job Retention (‘Furlough’) Scheme again. This time until 30 April 2021. But as the Scheme has been extended, the rules or calculations or both have changed. So what are the key things that you need to be aware of in making claims under the latest (‘new’) Scheme from 1 November?
Until now, claims had to be made for the whole Scheme period by a certain date. But going forwards, monthly claims will need to be made under the new Scheme. The deadline is the 14th of the month following the month of claim. Claims not made in time will not be paid. It will however, be possible to increase the amount of a claim if it is amended within 28 calendar days after the month the claim relates to.
Under the new Scheme, there is no need for employees to have been previously furloughed or for the employer to have previously used the Furlough Scheme. To be eligible, employees must have been employed on or by 30th October 2020. There are two exceptions:
In both cases, the employee can be re-employed and placed on furlough.
The reference period for calculating Usual Pay has changed under the new Scheme for some, but not all, employees. Employers need to be aware of the change.
Employers must confirm to their employee (or reach collective agreement with a trade union) in writing that they have been furloughed. This has to be agreed before any Furlough grant can be claimed. There is no backdating.
Whilst the new Scheme from 1 November increased the amount of the Furlough grant back to 80% of employees’ pay, this was only guaranteed until 31 January 2021 when the Government said that they would review the Scheme and may change the level of their contribution for February and March. However, the Chancellor announced on 17 December that he has decided to retain the 80% grant right through until the end of the extended Scheme on 30 April.
It is very important that employers claim the right amount. So, check and double check.
If a Furlough grant (either under an earlier version or under the new Scheme) has been over-claimed and not repaid, the employer must notify HMRC by the latest of either:
Failure to notify HMRC within these time limits may result in a penalty.
Our COVID-19: Guidance and resources for churches, charities and Christian workers covers the Furlough Scheme and the recent changes in more detail. There are also a large number of HMRC published Guidance documents for which you can find topical links from our COVID-19 Guidance and resources page.
In the interests of transparency and to fight fraudulent claims, HMRC will publish the names, value of claims and Company Registration Numbers of employers who make Furlough Scheme claims from December.
Employees will also be able to check if their employer has made a Furlough claim for them via their online Personal Tax Account from February.
Where HMRC charge a penalty for a deliberate default, they will consider publishing details of the defaulter online.
Read more...
Claim for wages through the Coronavirus Job Retention Scheme
Penalties for not telling HMRC about coronavirus (COVID-19) support scheme overpayments
COVID-19: Guidance and resources for churches, charities and Christian workers
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blogs by the Stewardship team and selected guest writers.
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