PART 1: DATES, DEFINITIONS AND OBLIGATIONS
to Covid-19. The rebate applies to a two week period only, starting from the first day of self- isolation. The only difference to sickness for other reasons is that the GP fit note is not required as evidence of a genuine absence. All other information usually recorded still applies. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS One further condition is that the PAYE scheme to which the rebate claim applies, must have been in place and in operation by 28th February 2020 and has fewer than 250 employees. On 16th April 2020 the scheme was extended to include employees who, as a consequence of being classed as extremely vulnerable and at very high risk of severe illness from the virus, have been advised to “shield” in order to prevent them from contracting the disease. They too are entitled to SSP from day one of their shielding and for every day they are unable, or advised not to work. Their shielding must be for a minimum of four days and they must meet the other criteria for SSP. It was made clear that this would only apply if the employer did not “furlough” the employee (see below) or is unable to make arrangements for them to work from home. Employers were reminded that this resurrection of the SSP rebate scheme is included in the state aid restrictions which remained in force during the transation period after the UK left the EU in February 2020 and technically remains in place now as the final details of the future relationship continue to the worked out. As at the time of writing HMRC has not signalled the end of this scheme. Coronavirus Job Retention Scheme (CJRS) On the 23rd April 2020 HMRC launched its new online portal for CJRS and the term “furlough” became an integral part of payrolls vocabulary. Furlough is defined very simply as a leave of absence, was generally used in the services and was in common use in the civil service. CJRS applied when an employer could, and did, place employees on furlough rather than dismiss them because they could not perform work. Whilst many employees did find themselves out of work, many who had to stay at home in accordance with the instructions issued and who could not work from home were placed on furlough by their employers and hence continued to be paid. The employer was entitled to make a claim under the scheme which was initially designed to fund 80% of the employees normal wage up to a maximum of £2,500 plus the employers National Insurance contributions and automatic enrolment pension contributions. In order to qualify the employer had to undertake to pay, and declare so, the employee at least that 80% amount of the wage. This function fell to many of those in payroll since the whole claimwas directly related to the payroll activities. Payroll staff themselves were coping with significantly changed working circumstances and were carrying out these extra tasks whilst setting up new working environments. No printing, c pying or reproduction permitted. One of the key criteria of the furlough scheme is that the employee will not be working, or cannot work. The official term is that the employee does not perform work that is of economic benefit to the employer. This meant small owner, managed businesses could still perform some work, such as statutory forms, returns and even maintaining contact with clients and taking on new clients, however any work which generated a charge for services or supplies automatically ended the
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