HMRC will open the Job Retention Scheme Portal on 20th April and hope to have the first re-imbursements made around 30th April. Businesses will be contacted with advice on what they need to do by HMRC at that time.
In order to make a claim in respect of those employees on furlough, employers will need:
- 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/have furloughed
- Payroll/works number for the employees you want to furlough
- 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 bank account number and sort code
- Your contact name
- Your phone number
Employers will be required to work out how much they are claiming. HMRC guidance also states that they reserve the right to retrospectively audit all aspects of a claim.
HMRC have confirmed that with regards to TUPE, employers that have undertaken a TUPE transfer, or similar transfer, after 28th February will be eligible for the Job Retention Scheme. Therefore, a new employer is eligible to claim under the Job Retention Scheme in respect of the employees of a previous business transferred after 28th February 2020 if either the TUPE or PAYE business succession rules apply to the change in ownership.
With regard to holidays being taken during furlough and the rate of pay for these holidays, there has been little in the way of updates. ACAS have updated their guidance to say that that if an employee is placed on furlough they can still request and take their holiday in the usual way (including bank holidays which is particularly relevant in April and May). In addition to this, HMRC Customer Support tweeted that it is possible to take annual leave when on furlough and it must be paid at full pay. This has not been confirmed in official guidance but hopefully in the coming days this will be clarified.
HMRC have updated their guidance to clarify that benefits provided through salary sacrifice schemes (including pension contributions) that reduce an employee’s taxable pay should not be included in the reference salary. Therefore, the reference salary is the employee’s salary post sacrifice and not the pre-salary sacrifice amount.
Insight from Noele McClelland, Employment Law Partner. For more information contact Noele or any member of the Employment team on 03330 430350.
