tim@mallontax.co.uk +44 (0)7857 122076

HMRC on CJRS – not good enough

We have just finished an HMRC webinar on the Coronavirus Job Retention Scheme which was attended by a mixture of employers and accountants. We were able to submit questions to the presenters. We list below a selection of questions and answers.

Q: For furloughed workers what does regular overtime refer to. We operate a haulage business , the lorry drivers receive basic pay each week plus on average 25hrs overtime each week. Should this be included in the furlough calculation?

A: This scheme aims to support all those employed through the PAYE system regardless of their employment contract, including those on zero-hour contracts.

Zero-hour and flexible contracts can cover a whole range of working arrangements. The self-employed will benefit from other measures announced alongside the Coronavirus Job Retention Scheme.

There are rules published in the 26 March guidance on the scheme that explain how the average salary of employees with variable earnings are calculated.

Q: Can ower single director company furlough themselves?

A: This scheme aims to support all those employed through the PAYE system regardless of their employment contract, including those on zero-hour contracts.

Zero-hour and flexible contracts can cover a whole range of working arrangements. The self-employed will benefit from other measures announced alongside the Coronavirus Job Retention Scheme.

There are rules published in the 26 March guidance on the scheme that explain how the average salary of employees with variable earnings are calculated.

Q: Can you provide some clarity around Agency Workers who work some weeks and not others.  If they havent worked in Feb, but have in Jan, can they be furloughed?

A: This scheme aims to support all those employed through the PAYE system regardless of their employment contract, including those on zero-hour contracts.

Zero-hour and flexible contracts can cover a whole range of working arrangements. The self-employed will benefit from other measures announced alongside the Coronavirus Job Retention Scheme.

There are rules published in the 26 March guidance on the scheme that explain how the average salary of employees with variable earnings are calculated.

Contempt

No, I haven’t had a bad dose of “cut-and-paste-itis”!. The same answer to three fundamentally different questions. And that same answer was provided to at least a further TEN questions submitted. These questions were presumably honestly submitted by employers who need answers. Employers who have presumably read the guidance provided so far which largely doesn’t cover the points they have raised.

This is not the time for HMRC to continue with their rather “lip-serviced” approach to engagement with employers. Employers won’t get the funds from the CJRS for at least a month- is it too much to expect for some clarity in the meantime?

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