Apr 2020

9

Online HMRC Service for Reclaiming Wages under Coronavirus Job Retention Scheme

HMRC has announced that the online portal or service for employers to make claims relating to the Coronavirus Job Retention Scheme is planned to be launched on 20 th April 2020. HMRC have advised that employers will only be able to register their claims online and no claim can be made by telephone. This claim is for employers that have furloughed their employees and can make a claim for 80% of furloughed employees’ pay up to a maximum of £2,500 per month per employee.

The Coronavirus Job Retention Scheme (CJRS) is a scheme the government introduced because of the corona virus pandemic in order to give financial support to businesses and employees. Under this scheme all employers, regardless of size or business sector, can claim from HMRC a payment for 80% of the wage costs for employees that were furloughed up to a maximum of £2,500 per month per employee. If the employer can afford to top up the additional 20% of the employee’s wages they can pay the employee the additional amount if they wish.

It has been advised that in order to claim employers will require a National Insurance number for each employee that was furloughed and salary details including National Insurance and pension contribution details for employers to calculate the amount they can claim under this scheme.

Authorised agents that have the capacity to act on behalf of their clients for PAYE matters will be able to claim on behalf of their clients. But agents with permission to file only and payroll bureaus will not have the ability to access this service on behalf of their clients. But file only agents may have to assist their clients in order to be able to make the claim and are being encouraged by HMRC to help where they can.

HMRC have advised that employers will be contacted with information and steps to follow on what the employer needs to do around the time that the service is planned to be launched. HMRC are hoping that the first claims will be made within a number of weeks.