There are some important updates with your payroll.
The main points are:
1.Claiming payment for furloughed any of your team
2.Qualifying for the £4,000 Employers Allowance
How to claim for furloughed team members
The only way to make a claim is online. The online claim service will be launched on GOV.UK on 20th April 2020. We expect there will be high levels of demand when it goes live and the earliest you can expect your first payment is 30th April.
If you are furloughing any of your team, there are a few important decisions to make:
If you need the money by 30th April
Your best chance is to login to HMRC’s portal first thing on Monday 20th April and follow the online instructions that are also due to be released that day. This will increase your chances of receiving the money on the first day that HMRC makes payments. If you are making a claim yourself, here’s the information you’ll need.
If you are worried about meeting April’s payroll costs, please let me know so we can discuss alternative methods of financing for you while you’re waiting for the payment to come through.
If you can wait until May for the payment
We’ll do it for you by Thursday 30th April. The payment will arrive in your bank account at some point in May. HMRC has said claims will be paid within six working days from submission. We recommend you forecast for 15th May.
From May onwards
You will be able to make claims up to 14 days ahead. We’ll need to discuss timings of pay runs with you so you can get the money before your payroll run. We’ll need your help to make sure we have the information from you early enough to receive the money you need in time.
£4,000 Employers Allowance
You may have seen the Employers Allowance has increased to £4,000 allowance this tax year. We’ve already got most of the information we need to decide if you qualify (full details here), what we don’t know is the amount of state aid you’ve received in the past three years. If you’ve received more than EUR €200,000 in state aid in that period (this includes government grants and R&D tax credits), you won’t qualify.
What we need you to get back to us on
If you are furloughing any of your team, please let us know if you’re going to make a claim yourself on Monday 20th April. If you don’t, we’ll do this for you before the end of the month if you have received more than EUR €200,000 in state aid over the past three years. If we don’t hear from you, we will make your Employers Allowance claim for you – assuming you meet the other criteria.
Finally, KKVMS’s charges
We want to do all we can to help you. We’ve decided not to charge for the work we do in managing your claims through the HMRC service for April’s payroll. We just ask that you bear with us as we work through the new system. Once we’ve got you set-up and have a better idea of the work involved, we’ll review this and discuss any charges going forward. If you have any questions about furloughing staff or any other HR queries, please don’t hesitate to call us.