E-shot 15/11/2020

Dear Client,

I do hope this update finds you well and you have enjoyed your weekend.

As so much has changed since our last mailshot I write to update you on the recent changes, most of which and more can be found on the covid-19 FAQ’s section linked here https://nannypaye.co.uk/covid-19

Rather than simply update the webpage it’s important we proactively point out some of the larger changes so please may I highlight the below as the significant news.

Your Deadline for Claiming Furlough Grant

30th November 2020 is the last day employers can submit or change claims for payroll periods ending on or before 31st October 2020. If you have furloughed your nanny in the months of July, August, September or October you now have until the end of November to claim for these funds.

Furlough Scheme Extended Until End of March 2021

On 5th November the Chancellor announced that the furlough scheme extension was to be further extended to 31st March 2021.  Originally announced as ending on 2nd December this extension gives eligible employers (new and existing) funding for 80% of the normal gross wage for unworked hours (up to £2500 per month).  The employer will still need to cover the cost of any employer NIC and employer pension contributions.

Future Furlough Claim Deadlines

Gov.uk have greatly shortened the deadlines for claiming your furlough grant from November onwards.  Going forward you will normally have no longer than the 14th of the following month to claim your grant (e.g. you will have until the 14th December to claim any furlough funds for November). Please see published dates below correct at the date of this mailshot.

Claim for furlough days in

claim must be submitted by

November 2020

14 December 2020

December 2020

14 January 2021

January 2021

15 February 2021

February 2021

15 March 2021

March 2021

14 April 2021

If you are making your first furlough claim (i.e. furloughed an eligible nanny for the first time from November please note you must open a paye online account to make your claim which can take some weeks to go live. Start this process immediately, if you have not already done so, by following our 3 step guidance on the covid-19 menu. If you need either your PAYE or Accounts Office reference numbers please just call or e-mail the office.

I have made my nanny redundant can I re-employ and furlough instead?

Yes. If you have made your nanny redundant, she/he can be rehired (if mutually agreed) and furloughed by you if they were still employed by you on 23rd September 2020 (i.e. redundant after this date), and you have made RTI submissions on or before 30th October 2020.

Please see Gov.uk guidance linked below:

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

How to calculate your claim

We have updated our full and flexible furlough calculators to allow you to calculate your November claim amount.  Please visit this page and ensure you select the November calculator:

 https://www.nannypaye.co.uk/job-retention-scheme-claim-calculator

What to watch out for in the coming months

In January 2021 the chancellor will be reviewing the level of grant given to employers which may result in employers covering more of the cost of the unworked hours. We will update you if your claim amount drops below 80% which seems to be likely at some point in 2021.

How do I keep NannyPaye in the loop about furlough?

For NannyPaye to accurately run your payroll please can you ensure we are updated immediately via e-mail to info@nannypaye.co.uk of any of the following:

  • Nanny returning from full time furlough to pre furlough hours.
    • Please provide the date of return to normal hours.
  • Nanny returning from flexible furlough to pre furlough hours.
    • Please provide the first date of working normal hours.
    • Please provide the potential working hours whilst on flexible furlough (the period up to the date of their return to normal hours).
    • Please provide the worked hours whilst on flexible furlough (the period up to the date of their return to normal hours).
  • Nanny returning from full time furlough to start working under flexible furlough.
    • Please provide the potential working hours for the whole month.
    • Please provide the hours worked for the whole month.
  • Nanny starting for the first time or restarting full time furlough
    • Please provide the date furlough started and if the unworked hours are being paid at 100% or 80%.
  • Nanny starting for the first time or restarting flexible furlough.
    • Please provide the date flexible furlough started.
    • Please provide the potential working hours whilst on flexible furlough (the period from the date of the start of flexible furlough to the end of the month).
    • Please provide the worked hours whilst on flexible furlough (the period from the date of the start of flexible furlough to the end of the month).
    • Please confirm if the unworked hours are being paid at 100% or 80%.
Job Retention Scheme Bonus - Withdrawn

Gov.uk were offering employers a £1000 bonus to eligible employers that brought an employee back to work from November. 

https://www.nannypaye.co.uk/the-1000-job-retention-bonus

This scheme was withdrawn on 5th November due to the extension of the furlough scheme.  If the scheme is relaunched, we will update you, but it seems unlikely due to the length of the new furlough scheme.

Job Support Scheme - Withdrawn

Gov.uk were offering employers some further wage subsidies from November.

https://www.nannypaye.co.uk/the-job-support-scheme

This scheme was withdrawn on the 1st November due to the extension of the furlough scheme. If the scheme is relaunched, we will update you, but it seems unlikely due to the length of the new furlough scheme.

My Nanny is vulnerable. Can they shield and I claim furlough for them?

Shielding in its original incarnation has ended however with the introduction of the extended furlough scheme, Gov.uk has updated its guidance of the eligibility of furlough for employees that are clinically extremely vulnerable.

Guidance can be found on these links:

https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

https://www.gov.uk/government/publications/guidance-on-shielding-and-protecting-extremely-vulnerable-persons-from-covid-19/guidance-on-shielding-and-protecting-extremely-vulnerable-persons-from-covid-19

The guidance states that an employee could be furloughed if they are:

  • clinically extremely vulnerable (at the highest risk of severe illness from coronavirus) and are unable to work from home following public health guidance.
  • unable to work (including from home) due to caring responsibilities because of coronavirus, such as caring for children at home because of closed schools and childcare facilities or caring for a vulnerable person in the household.

Definition of clinically extremely vulnerable groups

People who are defined as clinically extremely vulnerable are at a very high risk of severe illness from Covid-19. There are two ways you may be identified as clinically extremely vulnerable:

  1. You have one or more of the conditions listed below, or
  2. Your hospital clinician or GP has added you to the Shielded patients list, based on their clinical judgement, they deem you to be at higher risk of serious illness if you catch the virus.

If you do not fall into either of these categories and have not been informed that you are on the Shielded patients list, follow the new national restrictions.

Adults with the following conditions are automatically deemed clinically extremely vulnerable:

  • solid organ transplant recipients.
  • those with specific cancers:
    • people with cancer who are undergoing active chemotherapy.
    • people with lung cancer who are undergoing radical radiotherapy.
    • people with cancers of the blood or bone marrow such as leukaemia, lymphoma or myeloma who are at any stage of treatment.
    • people having immunotherapy or other continuing antibody treatments for cancer.
    • people having other targeted cancer treatments that can affect the immune system, such as protein kinase inhibitors or PARP inhibitors.
    • people who have had bone marrow or stem cell transplants in the last 6 months or who are still taking immunosuppression drugs.
  • those with severe respiratory conditions including all cystic fibrosis, severe asthma and severe chronic obstructive pulmonary disease (COPD).
  • those with rare diseases that significantly increase the risk of infections (such as severe combined immunodeficiency (SCID), homozygous sickle cell disease).
  • those on immunosuppression therapies sufficient to significantly increase risk of infection.
  • adults with Down’s syndrome.
  • adults on dialysis or with chronic kidney disease (stage 5).
  • pregnant women with significant heart disease, congenital or acquired.
  • other people who have also been classed as clinically extremely vulnerable, based on clinical judgement and an assessment of their needs. GPs and hospital clinicians have been provided with guidance to support these decisions.

My nanny returned from furlough on a new contract and I am now furloughing again from November. What do we base the pay on?

A point of some confusion and contention.  The below is an extract from the HMRC guidance published and correct as on 15th November 2020. In summary our interpretation is that should your nanny have been furloughed before, you should use the original furlough amount regardless of her current contract.  If your nanny is being furloughed for the first time then the pay should be taken from the agreed pay in October 2020.

https://www.gov.uk/guidance/steps-to-take-before-calculating-your-claim-using-the-coronavirus-job-retention-scheme

“You’ll work out your employee’s usual hours (for employees with fixed hours), by looking at their contracted hours at the end of their reference period.

The reference period is the last pay period ending on or before 19 March 2020 for employees who either:

  • were on your payroll on 19 March 2020 (meaning you made a payment of earnings to them in the tax year 2019 to 2020 which was reported to HMRC on a Real Time Information (RTI) Full Payment Submission (FPS) on or before 19 March 2020.
  • you made a valid Coronavirus Job Retention Scheme claim for them in a claim period ending any time on or before 31 October 2020.

For all other employees, the employee’s reference period will be their last pay period ending on or before 30 October 2020. These employee’s will only be eligible for periods starting on or after 1 November 2020.”

What if I or my child need to isolate due to Covid-19.

If any member of your household is suffering the symptoms of Covid-19 then your nanny cannot come to work as per the Covid-19 safe workplace guidance.

If you, your child or any member of your household do not have symptoms your nanny still cannot work in your home if either you or your child have been advised to isolate.  The only exception to this ‘may’ be a live in nanny as she is already part of your household however please contact NannyPaye or the HSE for specific guidance on this.

In these circumstances employers can consider placing the nanny on short term furlough and accessing the furlough grant if eligible.