How to inform HMRC

dewrox

Does anyone know how to inform the HMRC that you have furlough employees, and do we continue paying 80% or what they would have earned.

Jeremy535897

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme answers these questions.

dewrox

The article does not say how much i should pay the staff (80% or full), how I inform HMRC.  I have put furlough on their pay slips but don't want to be taking funds back if I over pay or if they don't refund.
It says the system should be up and running by the end of April.

p00hsticks

It's your choice (as an employer) whether you make up the additional 20% or not, but you'll only get 80% back from the scheme..  

neilmcl

dewrox said:

Does anyone know how to inform the HMRC that you have furlough employees, and do we continue paying 80% or what they would have earned.

Your choice as to how much you pay them above the 80% that you will eventually claim back from the govt. The whole point of the CJRS, which I think a lot of people are missing, is that it's there to help employers stay afloat by reducing one of the highest element of their expenditure, eg the wage bill, any decent employer I'd imagine would want to, if they could, top up the salary to it's normal level. At the end of the day the choice is yours.

dewrox

don't want to sound rude but my issue is how do i inform the government and what do i put on the payslip.

dewrox

if i put there full pay on the slip do i get 80%, or do i put 80% and then only get 80% of that.  Im confused

Dazed_and_C0nfused

You cannot inform them yet, it won't be until the end of April when they have the new system up and running.

You could describe the pay as "Furlough pay" on the payslip but don't forget you still have to deduct tax, NI, pension, student loan etc as normal (if any are due).

neilmcl

dewrox said:

if i put there full pay on the slip do i get 80%, or do i put 80% and then only get 80% of that.  Im confused

Look the process, although not in place, is likely to follow this way. Your payroll should continue as normal, or at a reduced rate if that's what you want to do, then every 3 weeks or so you make a claim for 80% of their salary based on their full time salary as of 28th Feb 2020, or if the salary varies it'll be the average salary from 2019/2020 or the same months from the previous year. The subsidy is not going to be based on their salary going forward, so in answer to your question it won't be 80% of 80% if that's all you choose to pay them.

It's all in here: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

sliphi

dewrox said:

don't want to sound rude but my issue is how do i inform the government and what do i put on the payslip.

With due respect, how you inform the government is explained in the link that was provided to you in the very first reply (the system is not available yet, but when it is, you can backdate the claim to when the employee was first furloughed, not being before 01 March 2020)

The employee's payslip should accurately reflect what you have paid your employee and when.

dewrox said:

if i put there full pay on the slip do i get 80%, or do i put 80% and then only get 80% of that.  Im confused

As I said, the employee's payslip should accurately record what you have paid your employee and when.
If you only are paying 80% of the employees usual basic pay (with the agreement of the employee) then that is what you reflect on the payslip.
The link provided in the first reply above explains on what basis the CJRS grant will be calculated. i.e. what they have earnt in the past, not what you are receiving now.

Hermann

Don't forget you need a written agreement with employee, varying the employment contract if necessary, placing them on furlough before you are eligible for the subsidy.