EMPLOYEE FURLOUGHING PROCEDURE
New guidance has been announced on the Coronavirus Job Retention Scheme which allows businesses to access support to continue paying part of their employees’ salary for those that would otherwise be laid off. On top of the wages covered, government will now reimburse employer national insurance and minimum auto-enrolment pension scheme contributions which could save employers £300 per employee.
How to access the scheme:
1. Employers will need to designate affected employees as ‘furloughed workers,’ and notify employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation. Download an example letter for businesses to adapt and send to employees.
2. Once the new HMRC online portal is live (predicted end of April) employers will need to submit information about furloughed employees.
Once an employee is furloughed, they cannot work for your company until the furlough period is over.
All UK-wide employers with a PAYE scheme that was created and started on or before 28 February 2020 will be eligible. The employer must have a UK bank account.
DEFERRAL OF VAT PAYMENTS
If you are a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to defer the payment until a later date or pay the VAT due as normal. More information here.
Over 10,000 businesses have already successfully applied for the extension. Companies will also temporarily be extended greater flexibilities, including holding AGMs online or postponing the meetings.
SELF-EMPLOYMENT INCOME SUPPORT SCHEME
Those who are self-employed with trading profits of less than £50,000 may be eligible to apply for a taxable grant to compensate up to 80% of profits lost due to coronavirus (up to a maximum of £2,500 per month for the next three months). HMRC will contact those who are eligible for the scheme.
TAX ON EXPENSES INCURRED FROM EMPLOYEES WORKING AT HOME
HMRC have produced guidance to help you find out what equipment, services or supplies are taxable if your employees are working from home due to coronavirus.