28th April 2020 – ‘Bounce back’ loans

Dear all

Please find details of the new initiative, the ‘bounce back’ loan. I presume this is necessary because the banks have made a hash of the original CBIL’s initiative.


This initiative should be actively pursued, once the application period opens on 4th May.


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27th April 2020 – Furlough scheme – Approved legislation

Dear all

Please find the approved legislation concerning the scheme.




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23rd April – St.George’s day and Furlough applications

Dear all

Firstly, Happy St.George’s day. Currently there would appear to be an obvious dragon that could be usefully slain and any assistance would be appreciated. (No, not Matt Hancock).

Secondly. We have now completed a few Furlough scheme applications and the consensus appears to be that they are reasonably straightforward for monthly paid staff, but once any level of detail is delved into, the process becomes the more difficult; average wages, employment allowance, directors etc etc.

There is also the practical problem of obtaining / remembering gateway passwords, where the payroll package automatically submits the RTI information.

So, the advice has to be to be careful. Once this is all over and St.George has done his job, the HMRC audit department will be all over the claims like a rash. (They already have the payroll figures don’t forget). Currently, there is no legislation, or case precedent to refer to as such so, above all, keep all your workings and be able to justify what you are doing.

We certainly do not have a monopoly of wisdom in this matter, but if you want to discuss or garner a second opinion please do make contact.




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21st April 2020 – Update

Nothing really new to report, save that the Furlough scheme is now open for business (any help required do please contact) and the government have announced a one stop shop for the various Covid 19 packages.




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16th April – Furlough scheme – this one is important!

Dear all,

In preparation for the furlough claim which opens on 20th April, we have now been given guidelines as to the necessary preparatory work. (See below).

If you require any help in this connection please shout.


Dear customer,

We wrote to you last week to help you prepare to make a claim through the Coronavirus Job Retention Scheme. We are now writing to tell you how and when to access the system with some more information about what you will need to have ready before the system goes live.

We are also updating you on an important change to the scheme relating to employee eligibility:

  • you can claim for employees that were employed as of 19 March 2020 and were on your PAYE payroll on or before that date; this means that you will have made an RTI submission notifying us of payment of that employee on or before 19 March 2020
  • employees that were employed as of 28 February 2020 and on payroll (i.e. notified to us on an RTI submission on or before 28 February) and were made redundant or stopped working for you after that, and prior to 19 March 2020, can also qualify for the scheme if you re-employ them and put them on furlough.

More information on this can be found on GOV.UK.

How to claim

As you prepare to make a claim, please note:

  • the online claim service will be launched on GOV.UK on 20?? April 2020 – please do not try to access it before this date as it won’t be available
  • the only way to make a claim is online – the service should be simple to use and any support you need available on GOV.UK; this will include help with calculating the amount you can claim
  • you can make the claim yourself even if you usually use an agent
  • claims will be paid within 6 working days; you should not contact us unless it is absolutely necessary – any queries should be directed to your agent, representative or our webchat service
  • we cannot answer any queries from employees – they will need to raise these with you, as their employer, directly.

Information you will need before you make a claim

In addition to the information in our previous email, you will need to have the following before 20?? April 2020:

  • a Government Gateway (GG) ID and password – if you don’t already have a GG account, you can apply for one online, or by going to GOV.UK and searching for ‘HMRC services: sign in or register’
  • be enrolled for PAYE online – if you aren’t registered yet, you can do so now, or by going to GOV.UK and searching for ‘PAYE Online for employers’
  • the following information for each furloughed employee you will be claiming for:
  1. Name.
  2. National Insurance number.
  3. Claim period and claim amount.
  4. PAYE/employee number (optional).
  • if you have fewer than 100 furloughed staff – you will need to input information directly into the system for each employee
  • if you have 100 or more furloughed staff – you will need to upload a file with information for each employee; we will accept the following file types: .xls .xlsx .csv .ods.

If you want an agent to act for you

Please note:

  • agents authorised to act for you on PAYE matters can make the claim on your behalf using their ID and password
  • you will need to tell your agent which UK bank account you want the grant to be paid into, in order to ensure funds are paid as quickly as possible to you.

You should retain all records and calculations in respect of your claims.

Guidance on GOV.UK is being regularly updated so please review it frequently.

We continue to wish you all the best at this challenging time.

Yours sincerely

Jim Harra

First Permanent Secretary and Chief Executive – HMRC

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15th April 2020 – Northampton Borough Council

Despite being told that the Councils would contact the ratepayer, inevitably there is a form that has to be completed if you want to claim from NBC!

Please find the link below:


This applies to recipients of rate relief and those in the leisure and retail industries.


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14th April – Preparation for Furlough scheme

Please find a HMRC letter in respect of the preparation for the Furlough scheme payments. Do please be careful of scammers!

Dear customer,
We want to help you get ready to make a claim under the Coronavirus Job Retention Scheme.
If you’re eligible for the scheme, there are things that you can do now to be ready when the system is up and running later this month.
You’ll need to provide the following to make a claim:
1. The bank account number and sort code you’d like us to use when we pay your claim.
2. The name and phone number of the person in your business for us to call with any questions.
3. Your Self-Assessment UTR (Unique Tax Reference), Company UTR or CRN (Company Registration Number).
4. The name, employee number and National Insurance number for each of your furloughed employees.
5. The total amount being claimed for all employees and the total furlough period.
If you use an agent who is authorised to act for you for PAYE purposes, they will be able to make a claim on your behalf, so please speak to them now.
However, if you use a file-only agent (files your RTI return but doesn’t act for you in other matters), they won’t be able to make a claim for you and you’ll need the information listed above from them to make the claim yourself.
For more detailed advice, please visit GOV.UK. This guidance is being regularly updated, so please review it frequently.
You may also find this recorded webinar helpful, ‘Coronavirus (COVID-19) Job Retention Scheme’, available on HMRC’s YouTube channel.
We’ll email you again in the next few days with more details on how and when to access the online system – please do not try to do this until we let you know it is available.
We wish you all the best at this challenging time,
HMRC Customer Services

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14th April – Woodlands scheme – carbon offsetting

At last, some none corona-virus news.

The government has found time to issue a statement concerning the new woodland scheme, whereby in the future they are able to buy carbon guarantee units, so as to offset against various carbon footprints.

This is potentially very important, particularly if the Agriculture Act is eventually passed.


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9th April – Furlough scheme – operational from 20th April

Dear all

Please find the latest information from HMRC concerning the Furlough scheme. As above, it goes live on 20th April.

“HMRC have been called on by the Chancellor to urgently direct financial support to where our citizens and businesses need it most. The first wave of this is the launch of the Coronavirus Job Retention Scheme.

We need your help in this important work. Your influence and your reach across the business sector are instrumental in helping us ensure employers know what they can do to get ready to make their claim. Claims should not be made by phone, it will be an online service.

The Coronavirus Job Retention Scheme (CJRS)

In response to the coronavirus pandemic, the Chancellor announced a series of measures to support businesses and their employees. One of those measures is the CJRS, that allows employers to claim 80% of the wages of staff (up to a maximum of £2,500 per employee) that they have furloughed (been put on temporary leave).

HMRC is working at pace to deliver the service that will allow businesses to make a claim. Businesses, and agents that are authorised to act on behalf of clients for PAYE matters, will be able to claim. However, file only agents, including Payroll Bureaus, will not be able access the service due to data protection reasons.

File only agents

If you are a file only agent, we still need your support. You will need to help your clients, as you might hold information that they need to make their claim. Businesses will need the following information on each of their furloughed employees:

  • National Insurance number
  • salary, National Insurance and pension contribution information that allows business to calculate the claim amount.

Service launch

We are ready to launch on 20 April. This will be made public shortly, at which point we will be contacting businesses to advise them what they need to do. At this point we would welcome you also contacting your clients and offering yourselves as vital support during this process, either directly, if authorised, or indirectly if you are a file only agent.

We are expecting phone demand to be beyond our capacity to offer a normal service. Therefore, the service is designed to be self-serve with guidance in place. Again, your support in helping us achieve this is called on.

Find out more

The latest guidance on CJRS can be found on GOV?.UK by searching for ‘Coronavirus Job Retention Scheme’.

HMRC will also be providing you with further information on our support for businesses and workers over the coming weeks, including more detail on the Coronavirus Self Employment Income Support Scheme.

We would like to thank you for your help to businesses at this time of national need. HMRC is working day and night, prioritising the need to get the financial support out to those who need it.

Yours sincerely


Jim Harra

First Permanent Secretary and Chief Executive – HMRC”

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6th April – 10.40am – New fiscal year, new problems

Dear all

Please find Hewitson’s excellent summary of the latest position in connection with the implementation of the Furlough scheme. When solicitors start caveating the interpretation of government schemes we know it will be far from straightforward!


HMRC has published guidance on the Coronavirus Job Retention Scheme (the Scheme), in particular in respect of an employer’s claim for wages of employees on furlough leave due to COVID-19.

As we know, where an employer cannot maintain their workforce due to the fact that their business has been severely affected by COVID-19, they can claim 80% of the furloughed employee’s usual wage costs, capped at £2,500 (gross) per month, plus the associated employer’s National Insurance Contributions and minimum automatic enrolment employer contributions on that wage.

Whilst the guidance does include a significant amount of information we were already aware of (albeit providing some further flesh on the bones), HMRC has helpfully clarified some areas which were unclear to date and had employers, lawyers and academics making educated guesses as to what the Government intended.

Many such clarifications will come as welcome news to employers who have already furloughed staff or are considering furloughing. We have highlighted below some of the main take away points for employers from this latest guidance.

Can apprentices be furloughed?

Yes, apprentices can be furloughed in the same way as other employees. Furthermore, apprentices can continue to train whilst furloughed, subject to the requirement to ensure that they are paid at least the Apprenticeship Minimum Wage, National Living Wage or National Minimum Wage (as appropriate) for the time spent training.

Practically, this means that if there is a shortfall between the amount claimed in respect of the apprentice whilst on furlough leave and their appropriate minimum wage, the employer will need to cover it.

Can employees that need to look after children be furloughed?

Yes, HMRC has confirmed that employees who cannot work because they have caring responsibilities resulting from COVID-19 can be furloughed.

Can employees take on a new job whilst furloughed?

Whilst the Scheme specifically prohibits furloughed employees from undertaking any work which makes money or provides services for their employer, HMRC’s guidance has confirmed that such employees are permitted to work for another employer whilst on furlough. This could mean that an employee would earn 80% of their wages (capped at £2,500 per month) from their current employer under the Scheme as well as earning 100% of wages by taking on a new job with a new employer.

It is worth remembering, however, that furloughed employees are still employed whilst on furlough leave and so whether or not they are able to take on other work whilst furloughed will ultimately be subject to the terms and conditions of their contracts of employment. In most cases such contracts will have clauses in them which prevents the employee from working elsewhere without their employer’s consent.

Whilst the new guidance is therefore welcome news to employees who may want to take the opportunity to top up from 80% (particularly if they are high earners and their pay will be capped at £2,500 per month), in most cases it will still be down to their employer as to whether they can take on a new job whilst on furlough leave.

Can employers claim back commission, overtime, fees or bonus?

Whilst previous guidance indicated that the wages that employers could claim for meant actual gross salary as at 28th February 2020, excluding any fees, commission or bonus.

HMRC’s latest guidance, however, has confirmed that employers are able to claim back “any regular payments you are obliged to pay your employees”.

In terms of what this means, HMRC has clarified that this not only includes an employee’s wages but also past overtime, fees (although there is no clarification as to what is meant by fees) and compulsory commission payments. This will be welcome news for employees who work in sectors or roles which are heavily commission based (for example, estate agents or salesmen).

However, discretionary bonus and commission payments cannot be claimed.

Can employees be furloughed more than once?

Yes. Whilst unclear to date and so subject to speculation, HMRC has confirmed that employees can be furloughed “multiple times”, provided that each time they are furloughed for the minimum period required of 3 consecutive weeks.

Must an employee’s agreement to being furloughed be recorded in writing?

Yes. Whilst previous guidance did not require this, HMRC has confirmed that employers should discuss furlough with their staff and make any changes to the employment contract by agreement.

Any such agreement by employees to be furloughed must be confirmed in writing in order for the employer to be eligible for the grant.

Further, HMRC has stated that the written record of the employee’s agreement to be furloughed should be kept for 5 years (presumably in case of audit).

Whilst HMRC’s guidance has provided some clarity there are still a lot of unknowns, including in particular the conundrum of whether employees can take annual leave whilst furloughed, in respect of which many legal commentators and academics disagree.

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