COVID-19 news
CIPP’s coronavirus (COVID-19) hub THE CIPP’S hub, which contains information to help and guide payroll professionals through the pandemic, provides news, resources and links to internal and external resources. (https://bit. ly/3hOK9kR) Guidance is changing almost daily, so members should ensure they subscribe to the CIPP’s News Online email service in order to receive advice and updates as soon as available. The news/articles listed below have been recently reported in the hub and can be reached via the links shown. The online content itself contains links to GOV.UK guidance. ● Check which employees you can put on furlough to use the CJRS (military reservists) – HMRC has confirmed that employers can furlough an employee who is a military reservist returning to work after a period of mobilisation, even if the employee is being furloughed for the first time. (https://bit.ly/3epi4OW) ● CJRS template available to download when claiming for more than 100 employees from 1 July 2020 – This template supplied by HMRC can only be used for claims starting on or after 1 July and must not include any claims for periods which started earlier. (https://bit. ly/2YSv4Gq) ● Reporting furlough fraud – An online form enabling employees to report claims that they feel are unlawful has been made available by HMRC. (https://bit. ly/2V8oBpJ)
● CJRS phase 2 frequently asked questions – This features questions relating to flexible furlough. (https://bit. ly/2V44GrS) ● The NHS test and trace service and its effect on pay – The Statutory Sick Pay (General) (Coronavirus Amendment) (No. 4) Regulations 2020, which came into force on 28 May 2020, provide that those employees contacted via a relevant notification and advised to stay at home and self-isolate, are deemed as incapable of work and therefore entitled to SSP. Workers in self-isolation are entitled to SSP for every day they spend in isolation if they meet the eligibility conditions. (https://bit. ly/3dl7oQk) ● Treatment of direct earnings attachments (DEAs) – In April 2020, the Department for Work and Pensions (DWP) announced that it would be writing to employers to instruct them to temporarily suspend DEA deductions from employees’ pay in April, May and June 2020. In response to the CIPP contacting the DWP’s Debt Management contact centre, it is understood that employers would be advised by letter to recommence deductions from July. (https://bit. ly/3duunbP) ● Changes to the CJRS and how this will affect pension contributions – The Pensions Regulator has published updated guidance to reflect that from 1 July 2020 staff may be furloughed on a flexible basis and permitted to return to work part-time for their employer.
For claims commencing on or after 1 August 2020 employers no longer have the option to claim a grant for up to the statutory minimum automatic enrolment employer contributions. (https://bit. ly/2zTniDR) ● Late filing and payment penalties – Taxpayers have the option during the pandemic to defer: value added tax payments between the period 30 March to 30 June 2020; and the July 2020 income tax self-assessment payment on account. HMRC will also accept the pandemic as a ‘reasonable excuse’ for those who are late filing their returns or paying their tax. Relevant penalties will be cancelled provided the employer has managed to file or pay as soon as they were able to. Employers also have an additional three months to appeal or ask HMRC for a review of the penalties. (https://bit.ly/2CuxVhk) ● Ordering paper P45s and P60s from HMRC – HMRC has postponed until 1 August 2020 its plan to withdraw the facility of ordering blank forms P45 and certificates P60 online. (https://bit.ly/3hRw32o) ● Treatment of expenses provided to employees – Guidance in relation to the treatment of certain expenses and benefits provided to employees has been updated. (https://bit.ly/2V3gR8j) ● CJRS guidance updates – HMRC guidance relating to how the CJRS will operate in the period July–October 2020 was released in June. Changes from 1 July are in the table. (https://bit. ly/2V8FL6y)
Summary of changes from 1 July 2020
July
August
September
October
Government contribution: employer NICs and pension contributions
Yes
No
No
No
70% up to £2,187.50
Government contribution: wages
80% up to £2,500 80% up to £2,500
60% up to £1,875
Employer contribution: employer NICs and pension contributions
No
Yes
Yes
Yes
10% up to £312.50
Employer contribution: wages
-
-
20% up to £625
80% up to £2,500 per month
80% up to £2,500 per month
80% up to £2,500 per month
80% up to £2,500 per month
Employee receives
Employer Bulletin THE JUNE edition published by HMRC contains extensive coverage of changes made to a wide range of rules affecting, amongst other things, income tax, NICs, SSP, the CJRS, pensions, expenses, calcualtion of average weekly earnings, financial scams and cyber security, and annual leave. Issue 84 can be viewed here: https://bit.ly/2BxJy6z .
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| Professional in Payroll, Pensions and Reward |
Issue 62 | July/August 2020
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