Further to our
recent correspondence, I have now received the enclosed update on the
Coronavirus Job Retention Scheme:
Dear Sir John,
This afternoon, the
Chancellor has announced some important changes to the Coronavirus Job
Retention Scheme. Further details on the changes, plus updated guidance on
other areas of HMRC support is below. Please do share these messages with your
constituents.
Additional HMRC support during coronavirus
Furlough Scheme Cut-Off Date Extended to 19
March
Thousands more employees will be able to
receive support through the Coronavirus Job Retention Scheme after the
Chancellor extended the eligibility date to 19 March 2020. Individuals
originally had to be employed on February 28 2020.
Under the scheme, employers can claim a grant
covering 80% of the wages for a furloughed employee, subject to a cap of £2,500
a month.
But following a review of the delivery system
and to ensure the scheme helps as many people as possible, new guidance
published today has confirmed the eligibility date has been extended to March
19 2020 – the day before the scheme was announced.
Employers can claim for furloughed employees
that were employed and on their PAYE payroll on or before 19 March 2020. This
means that the employee must have been notified to HMRC through the RTI system
on or before 19 March 2020.
The change is expected to benefit over
200,000 people.
HMRC has been working at pace to be ready to
deliver the scheme, which is due to be fully operational next week.
Updated guidance for employers is available
on GOV.UK
Updated guidance for employees is also
available on GOV.UK
Self-employment Income Support Scheme
Thank you for continuing to share the
guidance for the Self-employment Income Support Scheme (SEISS):
How to claim a grant through the coronavirus
Self-employment Income Support Scheme
How HMRC works out total income and trading profits for
the Self-employment Income Support Scheme
We have recently updated the guidance to
provide clarifications to some queries we’ve received, including:
- detail
of the treatment of losses, averaging and multiple trades
- clarifications
on the calculation of self-employed profits and what is meant by total
income
- confirmation
that individuals are able to continue working, including taking on
employment role
- confirmation
that owner-managers of Ltd companies can access the Coronavirus Job
Retention Scheme (CJRS) for their salary
- confirmation
that individuals can access Universal Credit and the SEISS
- clarification
on overlaps between the SEISS and CJRS (for example, you can claim the
SEISS and continue working).
We would greatly appreciate your help in
sharing this update as widely and as quickly as possible.
Benefits and Tax Credits
Benefits and Tax Credit payment increases
came into effect on the 6 April. Individual payment dates will vary. Customers
don’t have to take any action – they will receive increased payment by 18 May.
More information is available on GOV.UK.
This year, HMRC will automatically renew all
tax credits claims apart from those identified as high risk. This means that
around 3.9 million customers will have their claim auto renewed. These
customers will receive an auto renewal pack and they will only need to contact
us if their details differ from the pack.
We will need more information from 150,000
customers and they will be sent a ‘reply required renewal pack’ and will be
expected to complete it in the normal way.
If any of your constituents are currently a tax
credit claimant, and they claim Universal Credit, their tax credit award will
be closed from the day before their Universal Credit claim is made. Once they
have made a Universal Credit claim it is not possible for them to go back to
tax credits.
More guidance is available on GOV.UK.
Coronavirus scammers target taxpayers
Fraudsters are continuing to take advantage
of the package of measures announced by the Government to support people and
businesses affected by coronavirus.
HMRC has detected more than 40
coronavirus-related financial scams to date, most by text message.
We have asked Internet Service Providers to
take down more than 60 web addresses associated with these scam campaigns.
HMRC’s
advice:
Stop:
- Take
a moment to think before parting with your information or money.
- Genuine
organisations like banks and HMRC will never contact you out of the blue
to ask for your PIN, password or bank details, or to withdraw money or
transfer it to a different account.
- Don’t
give out private information, reply to text messages, download attachments
or click on links in texts or emails you weren’t expecting.
Challenge:
- Could
it be fake? It’s ok to reject, refuse or ignore any requests. Only
criminals will try to rush or panic you.
- Check
GOV.UK
for information on how to recognise genuine HMRC contact and how to avoid and report scams.
- If
you think you have received an HMRC-related phishing/bogus email or text
message, you can check it against examples published on GOV.UK.
Protect:
- Use
the latest software, apps and operating systems on your phone, tablet or
laptop. Update these regularly or set your devices to automatically update
so you don’t have to worry.
- Forward
suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.
- Contact
your bank immediately if you think you’ve fallen victim to a scam, and
report it to Action Fraud.
Business Support Campaign
Thank you for your support in sharing our
business support advice in recent weeks. We have now moved our Coronavirus Business Support site onto GOV.UK
and this content will be used in campaign material from now on.
The original Business Support website will
continue to remain available in the short term, but we would be very
grateful if you could point your members to our new site to ensure they have
the very latest information.
HM Revenue & Customs