As part of a support package of measures designed to help UK businesses through the coronavirus pandemic, the government has introduced the Coronavirus Job Retention Scheme.
This temporary scheme allows employers to “furlough” employees and apply for a grant that covers 80% of their usual monthly wage costs, up to a maximum of £2,500 a month. You can find out the full details of the scheme on the government’s website.
As part of the Coronavirus Job Retention Scheme, employers will need to submit details of any furloughed employees to HMRC. The new furlough processing system is now live and we’ve been working hard to create new tools to help simplify the claims process. Employers are expected to receive the money within six working days of submitting an application, so if you get your application in soon you could even get the money into your account in time for this month’s payroll.
If you use FreeAgent’s payroll
If you use FreeAgent’s payroll, you can now amend employee payslip details to include furloughed days and then automatically produce a monthly report containing the details you’ll need for your Coronavirus Job Retention Scheme claim.
We’ve tried to make the process as easy as possible in FreeAgent. You can read more about it over on our Knowledge Base.
If you don’t use FreeAgent’s payroll
If you don’t use FreeAgent’s built-in payroll system, we can still help out.
We’ve created a free coronavirus furlough claim calculator, which produces the numbers you’ll need for a Coronavirus Job Retention Scheme claim, albeit with a bit more manual data entry required when you make the claim.
We’re working hard to rapidly adapt FreeAgent to help you navigate your way through the coronavirus crisis, so keep an eye out for further developments or drop us a line if you have any thoughts or feedback.
Disclaimer: The content included in this blog post is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this blog post. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.