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Foreign employer - UK furloughed employee

Any views on a claim ?

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It seems from HMRC guidance that overseas employers with employees in UK on a UK PAYE scheme won't be able to claim. This seems bizarre. We act for a number of overseas companies with UK employees who are having to make them redundant. I can't give them any comfort about the possibility of a claim. Anyone else looked in to this and come to a different conclusion ? 

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JCACE
By jcace
02nd Apr 2020 00:16

"The scheme is open to all UK employers that had created and started a PAYE payroll scheme on 28 February 2020.......Any UK organisation with employees can apply.....You must have .... a UK bank account."
I guess that much will depend on the definition of a UK employer and/or a UK organisation. Presumably your overseas companies have some kind of UK tax presence, but whether that is sufficient to classify them as a UK employer is unclear from the current guidance.

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By Steve Holloway
02nd Apr 2020 08:35

Yes, I have that problem too with the added complication that they have no UK bank account. I have a client account that we have used to pay the small amounts of auto-enrolment contributions each month but there is no way I am going to use that for this purpose unless I can be sure they are legally eligible. I can see the argument both ways .. why should the Uk help an overseas employer but conversely without support it will be UK employees and nationals who are laid off.

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By gerrysims
02nd Apr 2020 10:36

It seems there is no assistance then so I think my client's UK employees will be made redundant. These employers are paying NI and of course the employees are paying taxes and NI too. It seems so short-sighted.
Thanks for the replies.

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By gerrysims
08th Apr 2020 11:10

For anyone affected I notice the guidance has now changed to say 'Any entity with a UK payroll can apply'. So having made their UK employee redundant my overseas client have to re-hire him and I have to try to unscramble the RTI filings !

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By [email protected]
15th Apr 2020 14:07

This is also one of the problems that i am facing in order to run the April payroll correctly as to whether or not foreign employer with UK employees who has a PAYE and UK bank account can claim this. I am currently with ADP for payroll processing and they have asked to split the potential claim under a Cov19 earning code and the rest is under normal salary code. Obviously if we can claim, the average salaries are very different from the gross basic salaries as the domestic staff worked lots of over times in the year. on the government release of 8th April, it added some more info e.g. corporate UTR or company registration number to claim the grant when it's up and running. I wonder if any of you have more clarity that foreign employer wiith UK employees definitely can not claim the furlough grant for the UK employees? Many thanks

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