Government PAYE Wages / 80% Scheme Thing

[Lou]

Government PAYE Wages / 80% Scheme Thing

Discuss.

 

[Murdoch]

Hum, I’m one of the many SE on here and we aren’t being looked after as much as the employed (yet)

They say it’s too difficult BUT if you apply for a mortgage then HMRC issue a SA20 to the mortgage company to confirm earnings and tax paid

So why can’t they use last years SA20 ? That would help the majority of the SE imho

 

[SimonG]

Although laid off the wife's employer claims the 80% from the government. She had it confirmed by them today.

 

[Harvest Fields]

That sounds a lot like fraud mate. I would report it.

 

[SimonG]

That sounds a lot like fraud mate. I would report it.

To pay to her. Should have added that bit

 

[Harvest Fields]

To pay to her. Should have added that bit

I’m still laughing to myself mate.

 

[Paul Byrne]

My accountant informed me that I can pay my employee 80% of their wage but have to claim the money back. If I haven’t got the cash to do that I can apply for a business loan of up to 10k!! So the funds don’t sound, to me, like they’re actually there yet. Unless I’m wrong. Which I hope I am! I’d love to be stood corrected.....

 

[firemant]

My accountant informed me that I can pay my employee 80% of their wage but have to claim the money back. If I haven’t got the cash to do that I can apply for a business loan of up to 10k!! So the funds don’t sound, to me, like they’re actually there yet. Unless I’m wrong. Which I hope I am! I’d love to be stood corrected...

I think your accountant is wrong. HMRC will pay 80% of your wage COSTS, not 100% of 80% of the pre furlough wage. And, yes, you have to pay it and claim it back later.


UK practical business advice: COVID-19 | ICAEW
Coronavirus Job Retention Scheme

Under the new Coronavirus Job Retention scheme, government grants will cover 80% of the salary of PAYE employees who would otherwise have been laid off during this crisis. The scheme, open to any employer in the country, will cover the cost of wages backdated to 1 March 2020 and will be open before the end of April. It will continue for at least three months, and can include workers who were in employment on 28 February.
To claim under the scheme employers will need to:

• designate affected employees as ‘furloughed workers’, and notify employees of this change. Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation; and
• submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal. HMRC will set out further details on the information required.
• HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month.

I added bold, underline and italics to last bit. That reads to me as if the Govt. will pay 80% of wages actually paid to furlough workers. Not 100% of any agreed payment, even up to £2500. So even if you took 80%, your boss would have to pay 20% of that amount.

 

[Lofty24]

I was given this yesterday but unsure how to claim.

House of Commons Public Bill Committee Amendments: Coronavirus Bill pages 14-18 - https://publications.parliament.uk/pa/bills/cbill/58-01/0122/amend/coronavirus_daily_cwh_0320rev.14-18.html?fbclid=IwAR1hsYJtr6PxB5J_bb1NLctI838w71CZcKI-zlTumC790B78udlVvlxMRbw