Purpose of the Scheme
This scheme replaces the CJRS (Furlough) Scheme and will run for six months from 1 November 2020. The purpose of the scheme is to support “viable” jobs where there is reduced demand for the duration of the scheme, but an expectation of returning to full-time work once demand is restored. Further details of the scheme can be found at:
Businesses can recover a large proportion of the payment to the employee after the RTI submission has been submitted and the employee paid. HMRC will then make the refund to the employer in the following month.
Full details of the claims process are yet to be published, but it is expected that this will be similar to the CJRS scheme with claims uploaded to HMRC through the Government Gateway.
Businesses wanting to minimise costs by submitting their own claims will need a Government Gateway account and know their login details and password, ensuring this has been activated for payroll services.
A Government Gateway account can be applied for via the button below:
Calculating the pay and Government contribution
We have developed a calculator to assist clients in calculating the various pay components, including the amount that can be recovered from HMRC after payment to the employee. This tool can be found at the following link and we recommend this is completed by you to keep costs to a minimum:
Please review the results carefully to ensure they meet with your expectations because we can accept no responsibility for action taken as a result of your use of the tool.
Our charges for preparing claims
We anticipate that many clients will use the above calculator to determine the various pay elements and will then submit their own claim to HMRC each month. In these circumstances we do not anticipate a charge unless advice is sought from us.
However, we appreciate that some clients will want Menzies to prepare and submit claims on their behalf. In these circumstances, providing the Job support Scheme calculator has been prepared by the client prior to the completion of the payroll, our charges will be:
- £100 + VAT plus
- £10 + VAT per employee included on the claim
Further charges will apply in the following circumstances:
- If we are asked to prepare the Job Support Scheme calculator on your behalf;
- If we are asked to make amendments to the Job support Scheme calculator due to client changes to information;
- If we are asked to make amendments to claims once prepared due to client changes in information.
Each of these will carry a charge of £10 plus VAT per affected employee.
The above charges are purely for the preparation and submission of the documents. Any further time necessarily spent on client communications and queries may result in additional charges based on time incurred.
Claim detail
We await further guidance from HMRC in relation to the information required in support of the claim, but this is likely to be:
- Claim period dates
- Employee name
- Employee National Insurance number
- Normal working hours in the claim period
- Actual worked hours in the claim period
- Unworked hours for the claim period
- Pay for worked hours
- Pay for unworked hours
- Amount claimed from HMRC per employee
- Total amount of the claim
Extended Job Support Scheme
The above relates to the Job Support Scheme, but the Government have also announced the Extended Job Support Scheme with additional financial assistance for businesses legally forced to close by the Government or a devolved authority. It is unknown how this scheme will fit with the Job Support Scheme, but current thinking is that this will require a separate claims process with additional reporting requirements. Unless further guidance indicates that claims under both the Job Support Scheme and the Extended Job Support Scheme can be prepared as one without additional reporting requirements, we anticipate that these claims will be regarded as separate, each being chargeable separately.
Action required
The first thing to consider is whether the Job Support Scheme is appropriate for your business given the conditions that apply to it. If you believe that the scheme may be of benefit to your business, we recommend that you use the Job Support Scheme calculator to consider the likely costs to your business. Please be aware that in addition to the pay and professional fees, the business will also be responsible for the employers National Insurance and Employers pension contributions, together with professional costs for putting appropriate agreements in place with employees.
If you decide to utilise the scheme, you will need to put written agreements in place with your employees.
You should then also decide what action you need to take regarding a Government Gateway account and the amount of support, if any, you would like from Menzies.
Please be aware that regardless of the level of support you require, it is ultimately your responsibility as end claimant to ensure that the information provided and reported within this document is accurate and that you meet the eligibility criteria outlined by the Government. All information in relation to your claim or calculations should be retained by you for six years as HMRC holds the right to retrospectively audit all aspects of your claim. We strongly recommend that all claims are genuine and justified and approved because the consequences of submitting inflated claims are likely to be severe.
The above will serve as our letter of engagement in relation to any assistance you request in relation to the Job Retention Scheme and any request for assistance by you will be treated as acceptance of the above fee structure.
Our standard terms and conditions apply and these can be found below:
Menzies will continue to be bound by the code of ethics of The Institute of Chartered Accountants in England and Wales and accept instructions to act for you on the basis that we will act in accordance with those ethical guidelines and your approval of the data herein this document.
Leave a comment