My 48 hours time call was returned today by HMRC.
My query was how to handle annual Director's payroll processed after 19 March.
The response was HMRC currently do not know how to handle annual Director payrolls processed after 19 March. They are awaiting guidance. Further, the person in question was not able to say the likely date this will be sorted.
Is this the case? What response did you get?
Thanks
Replies (13)
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The official guidance says:
You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020
and which were notified to HMRC on an RTI submission on or before 19 March 2020.This means an RTI
submission notifying payment in respect of that employee to HMRC must have been made on or before 19
March 2020.
It doesn't specify that the RTI submission has to be in 2019/20, so I would interpret that as an annual payroll that is not submitted until 2019/20 does not exclude the company from making a claim.
But a payment has had to be to be made for 2019/2020 and reported under RTI as per the regulations I've quoted further down this thread.
As often, with HMRC, the guidance is dumbed down, one has to read the law.
The ICAEW released this statement in a tax faculty update yesterday:
The HMRC CJRS portal is rejecting claims from some annual payrolls. The legislation - paragraph 5(a)(i) of the direction - makes it clear that claims must relate to an employee to whom the employer has made a payment of earnings in the tax year 2019/20 that was made before 19 March 2020. This issue has been raised with HMRC, but it would appear that the system is working in accordance with the legislation and the annual payment must have been included in an RTI report filed by 19 March 2020.
Oh B****! That's what comes of relying on HMRC guidance. Thank you Becky. That does seem unfair to those on annual payrolls though
Tell me about it! A few days ago I emailed all our annual PAYE scheme clients to see if anyone is going to be furloughed so we could claim under CJRS etc but luckily i stated that we are still assessing everyoneS eligibility due to constantly updated guidance etc from HMRC
Are you quoating verbatim?
I understood that RTI filing had to be done by 19/3/20, but that would include no payment EPSs, not necessarily paid salaries.
Are you quoating verbatim?
I understood that RTI filing had to be done by 19/3/20, but that would include no payment EPSs, not necessarily paid salaries.
5. The costs of employment in respect of which an employer may make a claim for payment under CJRS are costs which-
(a) relate to an employee-
(i) to whom the employer made a payment of earnings in the tax year
2019-20 which is shown in a return under Schedule A1 to the PAYE
Regulations that is made on or before a day that is a relevant CJRS
day,
(ii) in relation to whom the employer has not reported a date of
cessation of employment on or before that date, and
(iii) who is a furloughed employee (see paragraph 6), and
(b) meet the relevant conditions in paragraphs 7.1 to 7.15 in relation to the furloughed employee.
13.1 For the purposes of CJRS-
(a) a day is a relevant CJRS day if that day is-
(i) 28 February 2020, or
(ii) 19 March 2020.
I also had a 48 hour call back (from Monday) Friday morning at 8am, sadly I missed it and she's yet to call back as per message. We have had one annual Director payroll go through though. Need to check if payment received as understand some of the early claims have now received payment