COVID-19 update: salaries and furloughing

 In Analysis, Information, Legislation

This is relevant to all clients who have a payroll. Even if we do not process your payroll, we suggest you check this point with your payroll software provider.

 

When we run the April 2020 payrolls, we will include the payments made to yourselves and your employees under furloughing and advise HMRC as part of our normal payroll reporting. We believe that may be sufficient to secure for you the Government help to pay salaries of furloughed directors and employees. We will keep you informed on this as and when we have any more news.

Just for the avoidance of doubt, furloughing means that due to the measures being taken regarding the coronavirus outbreak, you have no work for you and/or your staff to do and have sent everyone home, pending the return of business life to “normal”. The Government have announced help to pay furloughed employees 80 per cent of their salaries up to £2,500 a month.

Unless we hear from you to the contrary, we will assume that you will have furloughed yourself and all your employees, if you have any. Therefore, please could you advise no later than 21 April 2020 who you will not be furloughing.

Unless we hear from you to the contrary, we will assume that you will pay yourself and your employees their salaries in full, i.e. not just the 80 per cent that the Government has promised help for. Therefore, please could you advise no later than 21 April 2020 if you will pay yourselves and your staff no more than the 80 per cent.

We will then run the April 2020 payrolls accordingly.

Should any questions arise please call (020 8457 7500).

We hope that all of you are keeping as well as possible.

– By Stephen Handley, FCCA

Recent Posts

Leave a Comment