An employer must let a worker take their annual leave and not replace it with payment in lieu. Where a worker leaves employment, the employer must pay the worker for any untaken leave. This will include any leave carried forward due to the coronavirus, and any leave that the worker has accrued in the relevant leave year. The payment for this untaken leave is based on a statutory formula laid out in the Working Time Regulations (WTR).
Furloughed agency workers
Any agency workers, inclusive of those working through an umbrella company, are still entitled to accrue holiday under the WTR, and/or their contract. This applies even if they are placed on furlough and a claim is made for them under the CJRS. Workers will continue to accrue holiday whilst on furlough. Where agency workers are engaged under a contract that sets out their entitlement to holiday, they will continue to accrue holiday on furlough as they ordinarily would when between, or otherwise not working, on assignments. Some agency workers on a contract for services may not be entitled to accrue or take holiday under the WTR when on furlough because they are not treated as workers under those regulations when between assignments or otherwise not working on assignments. Contracts may nevertheless include holiday provisions which will continue to operate in the same way as they did before the furlough period. Agency workers with worker status can take the holiday they are entitled to under the regulations or their contract of employment while on furlough. The employer placing an agency worker on furlough may continue to claim the grant from HMRC for 80% of the figure, but the employer must pay the amount to top the pay up to 100%. Employers can control when a worker takes leave if they observe the correct notice period, and the same applies to agency workers. Similarly, businesses may refuse holiday requests of agency workers. Agency workers may be able to carry holiday into future leave years.
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Applications can now be made for the Self-Employment Income Support Scheme 14 May 2020
HM Treasury has published a press release which confirms that the scheme to support the self-employed through the outbreak of coronavirus is now open for claims.
The Self-Employment Income Support Scheme (SEISS) will allow self-employed individuals and members of partnerships whose businesses have been negatively impacted by coronavirus to claim a grant of up to £7,500 to cover a three-month period. This is the maximum amount that can be claimed, but the grant is based on 80% of their average monthly trading profits.
It is expected that millions will benefit from the scheme, and any successful claims will result in payments being made to bank accounts within six working days of submission.
People will be able to make their claims on a specified date between 13 – 18 May 2020 based on their Unique Tax Reference number. HMRC has been assigning self-employed individuals a specific date to apply on, which can be verified on the online checker. Individuals are welcome to apply on or after their designated date, but not before. HMRC has produced a YouTube video which gives step-by-step guidance on how to claim. When eligible individuals go online, they will be asked to supply their Unique Tax Reference (UTR), National Insurance (NI) number and Government Gateway password and user ID. They will also be required to provide their bank account details and the address that the bank account is registered to in order for HMRC to make payment. Claimants must have a UK bank account that HMRC can transfer money directly into, as payments may be delayed if they do not have this.
HMRC will confirm how they have calculated the grant that individuals are entitled to, so that this can be discussed with tax agents or advisors should any queries arise. Tax agents are not permitted to make a claim on behalf of their clients,
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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