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  • RE: Furlough - variable pay calculation

    Hi Kris

    Thank you for your query about the Coronavirus Job Retention Scheme.

    As part of HMRC’s commitment to transparency and to deter fraudulent claims, we will publish information about employers who claim for periods starting on or after 1 December 2020.

    A list of employer names was published on GOV.UK on 26 January 2021. Further details can be found online at:
     

    Employers who have claimed through the Coronavirus Job Retention Scheme
    and

    Check if your employer can use the Coronavirus Job Retention Scheme
     

    From February 2021 we will start publishing the following information on a monthly basis:

    • the employer name
    • an indication of the value of the claim within a banded range
    • the company registration number for companies

    The public can report fraud to us if they have evidence to suggest an employer is abusing the scheme.

    You may want to speak to your employer if you would like more details about a claim they have made, as we cannot provide these for you.

    If you are concerned your employer is abusing the scheme, you can report them to us anonymously through our online fraud reporting tool here:
     

    Report fraud to HMRC
     

    This could include your employer claiming on your behalf and not paying you what you are entitled to, being asking to do work while on furlough, or making a backdated claim that includes times when you were working.

    The Coronavirus Job Retention Scheme forms part of a collective national effort to protect people’s jobs.

    We would ask anyone concerned their employer might be abusing the scheme, or anyone with information about suspected fraud, to please contact us.

    All information is assessed and the most appropriate course of action taken.
    Regards.

  • Re: CT600 submission with Furlough grant as Other income

    Hi

    My understanding is that furlough grants are treated as trading income, like revenue grants.

    Salaries and wages are deducted from a company’s trading income.

    Since furlough grants subsidise employers so that they can continue paying staff wages, the income ought to be treated as trading income.

    Please look at the HMRC BIM as per the link below.

    If you require further assistance, I would advise you seek advice from a Tax Agent/Accountant.

    Please see response below from one of our Techs regarding the customer query:

    My understanding is that furlough grants are treated as trading income, like revenue grants.

    Salaries and wages are deducted from a company’s trading income. Since furlough grants subsidise employers so that they can continue paying staff wages, the income ought to be treated as trading income.

    You can advise the customer to look at the HMRC BIM as per the link below. If they require further assistance, I would advise them to seek advice from a Tax Agent/Accountant.


    Business Income Manual

    Thankyou.

    Regards.

  • RE: CORPORATION TAX RETURNS

    Hi taxperson

    I would advise you to contact the Online Service helpdesk or use the ‘Get help with this page’ links.

    If they are unable to access the information required, they can also make a request to the CT helpline or webchat service to request a copy of the previous years return.

    If you require more than 1 years Return, you would need to write to the CT Services address.

    Thankyou.

    Regards.

  • RE: Furlough - variable pay calculation

    Hi IMO1 T

    Thank you for your query about the Coronavirus Job Retention Scheme (CJRS) and variable pay.

    We have published guidance to help employers calculate the grant available under the CJRS in the link below.

    This includes a calculator that can be used to work out what employer can claim for most employees who are paid under either regular or variable amounts:
    Steps to take before calculating your claim using the Coronavirus Job Retention Scheme

    The GOV.UK guidance explains that the number of days which you divide by when calculating the average monthly wages for tax year 2019 to 2020 is the number of days from the start of the tax year – including non-working days (up to the day before they were first furloughed, or 5 April 2020 – whichever is earlier).

    If your employee has variable pay, how you work out their usual wages depends on when they were on your payroll.

    For employees who were on your payroll on 19 March 2020, that is you made a payment of earnings to them in the tax year 2019 to 2020 which was reported to us on a Real Time Information (RTI) Full Payment Submission (FPS) on or before 19 March 2020, you should calculate 80% of the higher of the:

    • wages earned in the corresponding calendar period in a previous year; or
    • average wages payable in the tax year 2019 to 2020.

    This also applies to employees you made a valid Job Retention Scheme claim for in a claim period ending any time on or before 31 October 2020.

    For all other employees, you should calculate 80% of the average wages payable between 6 April 2020 (or, if later, the date the employment started) and the day before they were first furloughed on or after 1 November 2020.

    If your employee has variable hours, you will have completed a similar comparison to work out their usual hours but the outcome may be different.

    If they wish, employers can voluntarily top up payments.

    Further details and examples can be found online at:

    Regards.
  • RE: EMPLOYEES ON FURLOUGH

    Hi Shell68

    Thank you for your query about the Coronavirus Job Retention Scheme (CJRS) and holiday pay.

    Employees can take holiday whilst on furlough. If an employee is flexibly furloughed, then any hours taken as holiday during the claim period should be counted as furloughed hours rather than working hours.

    For background, the employer and employee can agree to vary holiday entitlement as part of the furlough agreement, however almost all workers are entitled to 5.6 weeks of statutory paid annual leave each year which they cannot go below.

    Employees can take holiday whilst on furlough. Working Time Regulations (WTR) require holiday pay to be paid at the employee’s normal rate of pay or, where the rate of pay varies, calculated on the basis of the average pay received by the employee in the previous 52 working weeks.

    So, if a furloughed employee takes holiday, the employer should pay them their usual holiday pay in accordance with the WTR.

    Employers will be obliged to pay additional amounts over the CJRS grant, though will have the flexibility to restrict when leave can be taken if there is a business need.

    This applies for both the furlough period and the recovery period.

    Further details can be found online at:
     

    Holiday entitlement and pay during coronavirus (COVID-19)

    Regards.
  • Re: Working Remotely from another country

    Hi CFC

    Thank you for your enquiry.

    As your enquiry is indepth I would advise you contact the offpayroll team at IR35@HMRC.GOV.UK who can assist with your enquiry.

    Regards.
  • RE: NIC not showing as paid after submitting and paying SA

    Hi

    Unfortunately, there are large volumes of work in the office at present which is leading to delays where manual allocation of NICs is needed.

    The area who deal with the allocation of Class 3 NICs currently has a turnaround of 28 weeks on their work.

    The area dealing with Class 2 allocations currently has a turnaround of 14 weeks.

    If the customer is approaching pension age and has made a payment that has not been allocated.

    I would suggest waiting at least 10 days after the payment is made and then calling the NI helpline on 0300 200 3500 and if the payment is held, we should be able to take immediate action to allocate.

    Thankyou.

    Regards.

  • Re:Corporation Tax Refund

    Hi

    I would advise that you contact the CT helpline or Webchat service in order to request cancellation of the Repayment Payable Order.

    You would normally have to send BACS details by post, but I believe we are currently allowing them to be given over the phone due to the COVID pandemic in order to reissue via BACS.

    I am unaware of the timescale regarding this process currently, so it may be quicker for you to pay the repayment payable order into your account if that is an option for you.

    Thankyou.

    Regards.

  • Working remotely in Spain - S1 certificate requested rejected, creating residency issues.

    Hi,

    The S1 is issued based on residency, however our decision is made based on the information on the application form.

    It is unclear whether an S1 was applied for separately, if not then a CA8454 will need to be completed.

    If a person has been rejected for an S1 and they disagree with the decision they need to send in an appeal in writing.

    We need to know why they disagree and the case will be looked into again.

    We cant do this over the telephone, this must be received in writing.

    Thankyou.

     

  • RE: Impact of NMW NLW increases on furloughed employees

    Hi Galleon99

    Thank you for your query about the Coronavirus Job Retention Scheme (CJRS).

    The National Living Wage (NLW) and the National Minimum Wage (NMW) are calculated on the basis of hours worked, and furloughed workers will not be working any hours for their employer, but will remain employed by them.

    Furloughed workers, who are not working, must be paid the lower of 80% of their monthly salary, or £2,500.

    Even if based on their usual working hours, this would be below NLW/NMW.

    Because of how monthly salaries are calculated for the purpose of the CJRS, the increase in the NLW/NMW will not necessarily be covered by the furlough scheme.

    If they wish, employers can top up these payments voluntarily.

    Further details can be found online at:
     

    Steps to take before calculating your claim using the Coronavirus Job Retention Scheme

    Regards.