I hope you & your family are all well in these uncertain times.
I am sure that yesterday evenings announcement by the Prime Minister has thrown up some unwanted questions and confusion. I wanted to update you as soon as possible to avoid you needing to trawl the internet for guidance, hopefully allowing you to enjoy what remains of your Sunday.
The announcements timing was not ideal for families, in our household we were dishing out sweets (in as socially distanced way as possible) to the trick or treating children and I hope the 18.30 announcement did not spoil your enjoyment of some long overdue family fun!.
I had planned to write to all clients today in any event, with further details on the Job Support Scheme, draft letters from our legal team etc and other updates on furlough generally but it seems that these plans must now change and I will focus on guiding you through the changes announced yesterday.
Today we will be covering:
- Can my nanny continue to work?
- What is the government financial support in November (please review this as all clients potentially have eligibility and the support is greater than September or October).
- The Job Retention Bonus.
- I will hold back on updating the Job Support Scheme guidance as so much is now likely to change.
Can my Nanny continue to work?
I can see from the NannyPaye inbox we already have queries regarding if your nanny can return to work from Thursday.
The answer is (as per all guidance issued by NannyPaye from March 2020 onwards) ‘Yes’. Your nanny cannot work from home therefore she can continue to work for you in your household.
The above however does not remove the requirement or responsibility for our clients to ensure they operate a COVID safe workplace and we encourage you to review our 12/05/2020 e-shot for some suggested approaches, linked below.
For the avoidance of any doubt your nanny should not be at work if you, a member of your household or your nanny are displaying symptoms of covid-19.
Current financial support / Furlough scheme extension
You will no doubt have picked up the Prime Minister mentioning that the Furlough scheme (Coronavirus Job Retention Scheme) has been extended up to the end of November 2020. (Originally due to end yesterday and be replaced by the Job Support Scheme).
Something that was not detailed in the announcement but has since been published is that this scheme has been enhanced (compared to September and October) and is now open to new entrants that may not have been able to take advantage of the scheme before.
Please see the published guidance below:
- Furlough and Flexible Furlough Scheme extended for a further month.
- New families can join the scheme so long as your nanny was employed, paid and RTI submitted by 30th October. (This is reliant on your HMRC PAYE References being with NannyPaye by that date, these can take around 2-3 weeks to arrive from the date you paid your subscription)
- Scheme now back to August levels of support with employers paying for any worked hours and HMRC covering the cost (in the form of a grant) of 80% (up to a maximum of £2500) of the unworked hours. HMRC are not covering the cost of Employers NIC or pension contributions.
- The date you can make your November claim has yet to be announced but we would expect this to be towards the end of November.
Guidance if you have not used the scheme before and wish to for November
If you are a relatively new employer, have not claimed a furlough grant before and intend to furlough your Nanny in November please start the following process immediately:
- Please write to your nanny to get her/his agreement to place them onto furlough. We have linked to a template letter here.
- You will need to open a PAYE online account. Please follow the guidance we issued to clients earlier in the year on the links below.
- The guidance refers to certain documents to access your employer reference numbers. It’s likely as a new client you will not have these documents so please e-mail NannyPaye to request these.
- At the end of step one HMRC state they will be posting you a security pin/code. Unhelpfully (regardless of the guidance) only about 50% of the clients are sent this pin with the other 50% getting immediate access. So please attempt to proceed to step 2 immediately.
- Step 3 of our guidance relates to actually submitting your claim which you cannot do yet. It is very likely to be a similar process but some questions/details may change. Please follow the guidance with this in mind.
Guidance if you have used the scheme before and wish to for November
If you have already made a claim for the furlough grant in the past and are now claiming for an employee that was on your payroll and RTI summited by 30th October then please continue as before, however, please ensure you use the November furlough calculators (due to uploaded in mid-November) on our website.
£1000 Job Retention Bonus
As more details emerge about this scheme, we can now confirm that Domestic Employers will not be excluded. This scheme is designed to avoid cliff edge redundancies when furlough ends and is open to employers who have previously claimed for an employee under the CJRS (furlough). In a nutshell it encourages employers to bring staff back from furlough and employ them in a meaningful way until at least the end of January 2021.
Please note that we are not certain if the scheme will be open to employers that furloughed for the first time in November 2020.
We have linked to HMRC guidance on the scheme here which we note (at the time of this mailshot) has already been superseded by the 31st October announcements:
This scheme can be used in conjunction with the new Job Support Scheme assuming Domestic Employer eligibility. The £1000 claim must be made between 15th February 2021 – 31st March 2021 (now subject to change). The exact process on how to claim should be released by late January 2021.
- A payment of £1000 can be claimed for each employee previously successfully claimed for under the CJRS.
- This is a bonus to the employer and does not have to be passed to your employee.
- To make the claim the employee must be paid a taxable amount every month from November to January and must not have been given notice. These dates are very likely to change due to the extension of the CJRS to the three months immediately following the end of the CJRS.
- These amounts must average at least £520 per month. E.g you can pay £100 in a single month so long as the average is £520 BUT you cannot have a month with zero pay.
- We expect a requirement for all RTI to be submitted on time and all of your PAYE payments to be up to date. Please ensure you allow NannyPaye time to process any late requests and keep your subscription maintained to avoid gaps in your declaration.
- You must keep your employee continually employed over this period and any notice period cannot start before 01/02/2021 or the last date of the scheme.
- The claim is quoted as taxable but domestic employers have been excluded from this so the payment will be tax free like the CJRS grant.
I hope you have found this update helpful. As always our guidance is to enhance not replace our phone support, so if you need us please just call.
Enjoy the rest of your Sunday.