PAYE 80% and claiming for it

maxmycardagain

Has anyone here had any success as an employer having had to furlough a PAYE employee and claiming the 80% for thier salary?

cheers 

BrassicWoman

the HMRC portal is not even live yet, so the answer will be no.

However I'm doing this for my employer from the admin side; can I help?

maxmycardagain

Coronavirus Job Retention Scheme

BrassicWoman

maxmycardagain said:

Coronavirus Job Retention Scheme

Yes, that's where the 80% comes from.. do you need help or are you having a ramble?

maxmycardagain

a mate has been laid off from his PAYE (furloghed) after 14 years with the firm on no pay and is expected to wait till june or whenever HMRC cough up
ive told him the firm should pay him is 80% out of employee tax/stamp and income and sort it with HMRC asap but not make him suffer

BrassicWoman

maxmycardagain said:

a mate has been laid off from his PAYE (furloghed) after 14 years with the firm on no pay and is expected to wait till june or whenever HMRC cough up
ive told him the firm should pay him is 80% out of employee tax/stamp and income and sort it with HMRC asap but not make him suffer

 The firm should, indeed do that. Also, we're expecting it to be a bit earlier than June; probably early May. The June date relates to self employed people.

Note he can't simultaneously be laid off and furloughed. Laying off is a different arrangement, legally.
Note he could also technically refuse to be furloughed, as it is a change to his T&Cs. 

The firm can apply for a loan to cover them until the cash comes through. However, you'll have seen from the news that many banks are making that difficult. If they don't have it, they cant pay him. So. "It depends." A lot of companies are choosing to just close the doors and file for bankruptcy at the moment. It's not about them being evil. It's about no customers, no cash.

Also, the courts are temporarily shut for new civil cases. So even if you're right, he's damn all legal recourse. Time to be charming, not militant.

Dox

maxmycardagain said:

a mate has been laid off from his PAYE (furloghed) after 14 years with the firm on no pay and is expected to wait till june or whenever HMRC cough up
ive told him the firm should pay him is 80% out of employee tax/stamp and income and sort it with HMRC asap but not make him suffer

My heart agrees with you 100%, but where do you believe the company is going to get the money to do that if they aren't generating any income?

JReacher1

Dox said:

maxmycardagain said:

a mate has been laid off from his PAYE (furloghed) after 14 years with the firm on no pay and is expected to wait till june or whenever HMRC cough up
ive told him the firm should pay him is 80% out of employee tax/stamp and income and sort it with HMRC asap but not make him suffer

My heart agrees with you 100%, but where do you believe the company is going to get the money to do that if they aren't generating any income?

Short term interest fee emergency loans have been announced by the government. One of those could cover the costs until the furlough money is returned. 

maxmycardagain

Dox said:

maxmycardagain said:

a mate has been laid off from his PAYE (furloghed) after 14 years with the firm on no pay and is expected to wait till june or whenever HMRC cough up
ive told him the firm should pay him is 80% out of employee tax/stamp and income and sort it with HMRC asap but not make him suffer

My heart agrees with you 100%, but where do you believe the company is going to get the money to do that if they aren't generating any income?

Company is trading, only 2 laid off, 4 kept on, takings circa £160K/year (mainly cash), premises costs low (small office) 
Has been this way for many years so to send him home on nil pay after 14 years (on contract of employment/PAYE) seems harsh. he only work 3 days a week on the NMW anyway.

maxmycardagain

JReacher1 said:

Dox said:

maxmycardagain said:

a mate has been laid off from his PAYE (furloghed) after 14 years with the firm on no pay and is expected to wait till june or whenever HMRC cough up
ive told him the firm should pay him is 80% out of employee tax/stamp and income and sort it with HMRC asap but not make him suffer

My heart agrees with you 100%, but where do you believe the company is going to get the money to do that if they aren't generating any income?

Short term interest fee emergency loans have been announced by the government. One of those could cover the costs until the furlough money is returned. 

our local authority has said they have HAD the extra funding but try getting it off them.............

PacketofCrisps

BrassicWoman said:

maxmycardagain said:

a mate has been laid off from his PAYE (furloghed) after 14 years with the firm on no pay and is expected to wait till june or whenever HMRC cough up
ive told him the firm should pay him is 80% out of employee tax/stamp and income and sort it with HMRC asap but not make him suffer

 The firm should, indeed do that. Also, we're expecting it to be a bit earlier than June; probably early May. The June date relates to self employed people.

Note he can't simultaneously be laid off and furloughed. Laying off is a different arrangement, legally.
Note he could also technically refuse to be furloughed, as it is a change to his T&Cs. 

The firm can apply for a loan to cover them until the cash comes through. However, you'll have seen from the news that many banks are making that difficult. If they don't have it, they cant pay him. So. "It depends." A lot of companies are choosing to just close the doors and file for bankruptcy at the moment. It's not about them being evil. It's about no customers, no cash.

Also, the courts are temporarily shut for new civil cases. So even if you're right, he's damn all legal recourse. Time to be charming, not militant.

Ok you seem like just the person that might be able to help me out, me and my partner have both been designated furloughed, and we have both been told that we will not be paid during this period until HMRC pay up, one of these companies is Shearings which is a large group so I imagine they have checked the legalities on this? 
Do you know specifically if companies 'have' to pay their employees while they are being furloughed and claim it back later or can companies due to lack of funds wait until they receive the money and pass it on to their employees at a later date?
On my home forum their is a business owners section and we are all confused about this, some beleive they have to continue to pay their employee's at a reduced rate (80%), others believe they don't and will wait until they are paid by HMRC. 

To sum up, basically what I'm asking is if employers refuse or can't afford to pay while your are furloughed will they be able to still claim the 80% wages from HMRC for that period?