How Hospitality Businesses Can Apply For The Coronavirus Job Retention Scheme and #BounceBackBetter
The Coronavirus Job Retention Scheme (CJRS) has been set up by the UK government to help employers who cannot maintain their current workforce due to the impact of the coronavirus. Employers can furlough employees (assign a leave of absence) and apply for a government grant that will cover 80% of their employees monthly wage (up to a max of £2,500). The scheme will be in place for 4 months from 1st March 2020 but could be extended if deemed necessary by the UK government.
HMRC’s online portal for employers to claim the CJRS went live on Monday 20th April 2020. Employers can now claim online and can expect to receive the cash refunds directly into their nominated UK bank account within 6 working days of claiming.
To help our customers and friends in the retail and hospitality industry, we’ve provided a quick guide on how to apply for the UK government’s furlough scheme.
Eligibility for the scheme
There are a number of criteria that need to be met before employers can submit a claim.
For an employer to be eligible for the CJR scheme, you must have:
- created and started a PAYE payroll scheme on or before 19 March 2020
- enrolled for PAYE online
- a UK bank account
- Any entity with a UK payroll can apply, including; businesses, charities, recruitment agencies and public authorities.
In order for employers to submit a claim to the CJR scheme, your employees must agree in writing to be made a “furloughed worker”. You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020.
- Below is the list on requirements to determine an employee’s eligibility:
- A RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020
- Employers must agree with the employee that they are a ‘furloughed worker’
- Employees must be notified in writing that they have been furloughed
- Employees must be furloughed for a minimum of three weeks
- Furloughed employees cannot do any work for the employer that has furloughed them
- Employees can be on any type of contract, including a zero-hour contracts or a temporary contract
- Employees can be furloughed under the scheme if they are a foreign national
More information on employee eligibility can be found on the HMRC website.
How to calculate your claim
Once you have notified your employees that they are to be furloughed, you will need to calculate the amount that you can claim back. HMRC has provided an online calculator that employers can use to work out much can be claimed as wages, national insurance contributions and pension contributions. These figures will then be submitted as part of the online application for the claim.
The calculator will help you calculate the following figures:
- Gross amount paid to a furloughed employee
- Total employer National Insurance contributions
- Total employer pension contributions (up to 3%)
Below is the list of the information you will need before you use the calculator:
- start date of your claim
- end date of your claim (for example, date of next payroll run)
- employee’s pay dates (when they get their pay)
- end dates of the periods of time (for example monthly) that they are paid for
- how much they are paid (before deductions)
- when their furlough started (and ended, if not ongoing)
- their National Insurance category letter
Check out HMRC’s calculator to calculate your own claim.
Making a Claim
The scheme opened on Monday 20th April 2020. There are 2 ways Employers can apply for the scheme; the first is through an agent who has authorisation to process your PAYE (e.g. an accountant.) The second way is to apply yourself, online. If you are making the claim yourself, you will need the following information:
- The number of employees being furloughed
- The dates employees have been furloughed to and from
- Details of employees: the name and National Insurance Number of each furloughed employee
- Your employer PAYE scheme reference number
- Your Corporation Tax Unique Taxpayer Reference, Self-Assessment Unique Taxpayer Reference or Company Registration Number as
- appropriate for your entity
- Your UK bank account details
- Your organisation’s registered name
- Your organisation’s address
You will need your Government Gateway ID and password to log into the online portal. If you do not have a Government Gateway ID, you can register online to receive it.
Bizimply customers can also track and report on their furloughed employees. This report will help identify some of the above information.
After your claim
Once your claim is submitted, you will receive a claim reference number. You must keep this safe. HMRC will verify your claim and you will receive the funds into your nominated UK bank account within six working days.
Points to note:
- Keep hold of your claim reference number
- Retain calculations that form the basis of your claim in case further information is required by HMRC. (If an agent, submitted on your behalf, ask for a copy of their calculations)
- Tell your furloughed employees that you have made a claim and that they do not need to take any further action.
This scheme will provide much-needed financial assistance to those who are eligible. that follow these steps. We understand that the current situation is under constant change, however. This could be reflected by a change in benefits or eligibility for businesses. Make sure to check the HMRC website regularly for the latest information and advice from the government.
We at Bizimply also strive to keep up to date on the Coronavirus Job Retention Scheme’s latest developments. Don’t hesitate to contact us by phone, email or social media if you have any questions:
(UK) +44 203 642 5644
(IRE) +353 (1) 254 2524
Email: [email protected]
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