The next stage of the Job Retention Scheme commences on the 1st August, when the level of government support will begin to be reduced.
“for August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.
for September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed
for October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed
Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.
The table shows Government contribution, required employer contribution and amount employee receives where the employee is furloughed 100% of the time.
Wage caps are proportional to the hours not worked.”
Source gov.uk/government/publications/changes to the coronavirus job retention scheme
|Government contribution: employer NICs and pension contributions||Yes||No||No||No|
|Government contribution: wages||80% up to £2,500||80% up to £2,500||70% up to £2,187.50||60% up to £1,875|
|Employer contribution: employer NICs and pension contributions||No||Yes||Yes||Yes|
|Employer contribution: wages||–||–||10% up to £312.50||20% up to £625|
|Employee receives||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month|
Table: source gov.uk/publications/changes to the coronavirus job retention scheme
IF YOU HAVE CLAIMED TOO MUCH OR NOT ENOUGH FROM THE CJRS
If you have claimed too much or if you want to delete a claim in the online service, you must do this within 72 hours.
If you have made an error in a claim that means you have received too much, you must pay this back to HMRC. You can either:
- tell HMRC as part of your next online claim (your new claim will be reduced, and you’ll need to keep a record of the adjustment for 6 years)
- contact HMRC to pay the money back (you should only do this if you’re not submitting another claim)
If you’ve overclaimed a grant and have not repaid it, you must notify HMRC by the latest of either:
- 90 days after the date you received the grant you were not entitled to
- 90 days after the date you received the grant that you were no longer entitled to keep because your circumstances changed
- 20 October 2020
If you do not do this, you may have to pay a penalty. If you do repay any overclaimed grant, this will prevent any potential tax liability in respect of the overpayment of Coronavirus Job Retention Scheme. HMRC will not be actively looking for innocent errors in their compliance approach.
Find out more about when you may have to pay a penalty and other information, including:
- how HMRC decides how much the penalty will be
- when HMRC will not charge a penalty
- how to appeal against a penalty
See: GOV.UK for more information
IF YOU HAVE NOT CLAIMED ENOUGH
If you have made an error that has resulted in receiving too little money, you will still need to ensure you pay your employees the correct amount. You should contact HMRC to amend your claim. As you are increasing the amount of your claim, they may need to conduct additional checks.
After 31 July, you will no longer be able to amend a claim relating to the period up to 30 June to add an employee that should have been included on a claim submitted before that date. You must make sure that any remaining claims still to be made for the period to 30 June include all of your eligible employees. Amendments for any other errors you made that resulted in you not claiming enough will still be permitted after 31 July.
For the full details see: gov.uk
SELF-EMPLOYMENT INCOME SUPPORT SCHEME (SEISS) UPDATE
The scheme is now closed to new claims for the first grant. However, the scheme has been extended. If you were eligible for the first grant and can confirm to HMRC that your business has been adversely affected on or after 14 July 2020, you will be able to make a claim for a second and final grant from 17 August 2020. You can make a claim for the second and final grant if you are eligible, even if you did not make a claim for the first grant. The online service is not available yet. If you are eligible you will be able to make a claim for a second and final grant from 17 August 2020. HMRC will contact you if you’re eligible.
Full details can be found HERE
If you made a claim in error as you were not eligible for the grant, have been overpaid or would like to make a voluntary repayment, tell HMRC and pay some or all of the grant back.
Further government advice can be found HERE
Please talk to us if you are intending to make a claim as we have a calculator to assist you.
MAKING AND REGISTERING A LASTING POWER OF ATTORNEY (LPA) DURING THE CORONAVIRUS OUTBREAK
If you want to make an LPA now, you can still do so while observing government guidance on social distancing, self-isolating and shielding.
Making a LPA is an important decision that you should think about carefully. An LPA needs to be signed and witnessed by several people.
Once the LPA has been signed, you need to send it to the Government for registration. It may then be around 8 weeks before you get the registered LPA back and can start using it. This includes a 4-week waiting period required by law.
VIDEO-WITNESSED WILLS TO BE MADE LEGAL DURING CORONAVIRUS PANDEMIC
The Government is to legalise the remote witnessing of wills – making it easier for people to record their final wishes during the coronavirus pandemic.
Further information can be found here
Disclaimer: The information in this article is provided for general information only and does not constitute legal or professional advice. We cannot accept responsibility or liability for any actions you may take, or not take, based on this information.