SOME KEY INFORMATION IN RELATION TO THE CORONAVIRUS JOB RETENTION SCHEME (Updated 22.04.20)

 

We would like to draw your attention to some key items in relation to the Coronavirus Job Retention Scheme


- Are you a company director?

- Are you no longer able to work and generate revenue for your business?

- Could you be furloughed and claim the CJRS grant?

As office holders, salaried company directors are eligible to be furloughed and receive support through this scheme.

Company directors owe duties to their company which are set out in the Companies Act 2006.  Where a company (acting through its board of directors) considers that it is in compliance with the statutory duties of one or more of its individual salaried directors, the board can decide that such directors should be furloughed.

Where one or more individual directors’ furlough is so decided by the board, this should be formally adopted as a decision of the company, noted in the company records, and communicated in writing to the director(s) concerned.

Where furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so, provided they do no more than would reasonably be judged necessary for that purpose, ie they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.

This also applies to salaried individuals who are directors of their own personal service company (PSC).

Employers

Are you making a claim?

Please take care when claiming and watch out for the following:

Remember there are two different tax years for March and April, and this will impact NIC and pensions

NIC

- Start with the grant you're claiming for employee's wages.

- Minus the relevent secondary National Insurance Contributions threshold.

- Multiply this amount by 13.8%.

You can't claim the NIC if you still are able to claim employer allowance in each tax year.

Pensions

Start with the amount you’re claiming for the employee’s wages.

Deduct the minimum amount your employee would have to earn in the claim period to qualify for employer pension contributions – this is £512 a month for periods before 5 April 2020, and £520 a month for periods after 6 April 2020.

Multiply by 3%.

Take care and keep safe.