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Article Date: 22 April 2020
An Example of a Submitted Claim under the Coronavirus Job Retention Scheme (CJRS)
One of our clients successfully submitted their claim for furloughed wages, etc. on the afternoon of Monday 20th April 2020.
To assist other dealers, they kindly provided us with details of how they did so, including screen prints of HMRCs online system, for which we are extremely grateful.
The following is how they went about this – the headings in italics are quotes from HMRCs guidance
“Work out 80% of your employee’s usual wages”
For this client, all their employees pay varies, so they claimed 80% of their average monthly wages for the tax year 2019-2020, all of which were less than the maximum £2,500.
“Working out how much you can claim for employer National Insurance and pension contributions”
This client runs their payroll using Sage, so they entered the furlough wages they had calculated into it and created a “Payment Summary” for each employee.
They then used HMRCS “Job Retention Scheme Calculator” to sample check the amounts of furloughed wages, employer National Insurance and employer pension contributions for three employees. (Note - although HMRCs calculator does not work when the pay varies, the furlough wages are now a regular amount, so we used that option) I myself also checked one of the employees using the calculator at the same time as the client.
HMRCs calculator either agreed or was within pence of the Sage “Payment Summary” amounts for each, so the client used the amounts per Sage – see the copies of the three Sage “Payment Summary” and HMRC calculator screen prints below, with the employer National Insurance and pension contributions on the former circled.
Document 1
The client then extracted all the Sage “Payment Summary” details onto a “Staff Retention April 2020” spreadsheet, which gave them full details of all the furloughed employees, including names, National Insurance numbers, employee reference/works number, and claim amounts, as well as totals of the latter – copy below.
Document 7
The client now had all the information necessary to make their claim.
“Claim for wages through the Coronavirus Job Retention scheme”
The client logged onto HMRCs online service.
They entered details of their UK bank account and sort code, their PAYE scheme reference number – the “123/A456789” one, not the “123/PN004567890” accounts office one – and the number of employees being furloughed.
They were then asked to enter for each employee their National Insurance number and (optionally) their employee reference/works number.
They were finally asked to enter the start and end date of the claim (Note – not all employees will necessarily have been furloughed throughout the entire period of a claim), the full amount claimed for wages, employer national Insurance and employer pension contributions, and the clients contact name and telephone number.
Having done so they were then asked to review all their entries – screen prints of the HMRC service for “Employees added” and “Review your answers” below.
Document 8
Document 9
You will note that on the latter the “Claim details” exactly match those on the Staff Retention April 2020” spreadsheet and that it includes a “Declaration” to HMRC.
Having done this, the client was able to “Confirm and submit” and received a claim reference number, a statement of the total claim amount, the employer reference against which the claim was made and the date, and information on “What happens next” and “What you should do next” – screen print below.
The former confirms that, once eligibility has been checked, payment will be made “in 6 working days”, which for this client means it should be received by next Tuesday 28th April 2020. (Note – HMRC stated in an email issued on Monday 20th April 2020 – that, to ensure claims are paid by 30th April 2020, they need to have been submitted by today Wednesday 22nd April 2020 – copy of email linked below; and, yes, HMRC do have me down as an employer!)
And now we wait!
Comments
The bad news is that it took the client five attempts before they were actually able to submit their claim - they had actually intended to leave it to the next day when their last attempt finally went through.
The good news is that on each “crash” the online system had auto saved what they had already entered – imagine having 99 furloughed employees and the system crashing when you had entered the 98th.
As with this client, if you need our assistance – on this, that, coronavirus, whatever – you know where we are.
Stay safe.
Martin Redfern
Tax Manager
Please read more information on our: https://www.linkedin.com/company/ase-plc
If you have additional questions which have not been addressed above please contact Chris Cummings on 07896 117908 or by email chris.cummings@ase-global.com
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