Employer not on Real-time PAYE system – Excluded from Coronavirus Job Retention Scheme for staff

Clearski

Hi there,

Wondering if there is anyone else out there in the same boat as my girlfriend?  She makes a meagre living as a self-employed, work-from-home childminder and had problems with keeping up the PAYE payments for her two part-time staff in the past, so had an agreement with HMRC to pay them directly, outside of the Real-time system.

She paid over £3,000 in PAYE last year, despite this they have refused her access to the Job Retention Scheme, so can’t get any contribution towards the wages she's paid to her staff that she had to furlough when she was closed in lockdown.  She has bank records for all the payments made to staff and the irony is that during lockdown she finally had time to get the system corrected and up to date, although still owes them money.

Despite having written to her MP and The Chancellors Office she's getting nowhere challenging this.

Any other small, self-employed businesses out there that are not on real-time PAYE system and what's your story making a JRS claim please?

Kind regards, G.

Thrugelmir

In a cash generative business should be no reason for arrears on employee payroll deductions. 

Clearski

Thank you for keeping the conversation going.

I did not say she is currently in arrears.

prowla

Clearski said:

Thank you for keeping the conversation going.

I did not say she is currently in arrears.

erm...

Clearski said:

..., although still owes them money.

Clearski

Thank you for taking the time to read and correct me.  I'm sorry I didn't make it clear in the original post; she is up to date on an HMRC approved PAYE payment scheme but is not on the real-time system, however has a payment plan on her self assessment which is in arrears.  HMRC have in fact just sent out another letter encouraging people to make arrangements for payment plans, dated 13th of July.

I'm still wondering if there are others in the same boat, i.e. up to date on PAYE but not on the real-time system and have been refused access to the Job Retention Scheme payments for employers to pay their staff?

poppy12345

Even if she could claim it, it's too late now because the final date to be able to claim was 10th June.

unholyangel

Clearski said:

Thank you for taking the time to read and correct me.  I'm sorry I didn't make it clear in the original post; she is up to date on an HMRC approved PAYE payment scheme but is not on the real-time system, however has a payment plan on her self assessment which is in arrears.  HMRC have in fact just sent out another letter encouraging people to make arrangements for payment plans, dated 13th of July.

I'm still wondering if there are others in the same boat, i.e. up to date on PAYE but not on the real-time system and have been refused access to the Job Retention Scheme payments for employers to pay their staff?

Anyone not using RTI to report wages would not be eligible because the requirement for employer eligibility is that they have a RTI PAYE system registred with HMRC on 19th March and the requirement for the qualifying costs is that the costs relate to an employee for whom there has been a payment made during the 19/20 year which was included in an RTI submission to HMRC on or before 19th March.