The Coronavirus Job Retention Scheme (CJRS) devised by Government to help businesses is set to go live on the 20th April 2020, with HM Revenue and Customs (HMRC) announcing a new cut off date for those furloughed.
The scheme will be run by HMRC as a way to keep employees on the payroll if employers are unable to operate or have no work for its workforce because of coronavirus (COVID-19).
Chancellor Rishi Sunak has asked HMRC to deliver financial support to businesses and employees using CJRS, and HMRC explained that claims will need to be made online, and not by phone.
HMRC also announced a new revised date for employees. It stated: ‘Any employer with a UK payroll and a UK bank account will be able to claim, but you must have been on your employer’s PAYE payroll before or on 19 March 2020 and notified to HMRC on an RTI submission on or before 19 March 2020.’
It also added that any one ‘employed as of 28 February 2020 and on payroll (i.e. notified to HMRC on an RTI submission on or before 28 February) and were made redundant or stopped working for your employer prior to 19 March 2020’ can also qualify for the scheme if your employer re-employs you and puts you on furlough.
To reiterate, this will allow businesses to make a claim for 80% of furloughed employees’ pay, up to a maximum cap of £2,500 per eligible employee.
Barry Hood, who runs transport compliance consultancy and membership organisation Pro Tect Solutions, said: ‘This will give UK business 10 days before 30th April 2020 for claims to be made and hopefully funds to arrive to enable wages payments to be made.’
He added that this date is ‘ahead of the original schedule and could make a huge difference to the cashflow of a number of businesses’.
He continued: ‘It has been confirmed that authorised agents can make the claim on their client’s behalf if they complete your payroll then this must be agreed and completed as soon as possible to enable your claim to be processed.’
To furlough an employee, businesses will their National Insurance number, and salary, National Insurance and pension contribution information.