The Caterer reports that employees who changed jobs during October and were not included on their new company's PAYE Real Time Information (RTI) system until the last day of the month will not be able to access the government's extended furlough scheme.
Hospitality operators have voiced their concern that as a result newly employed staff are going to be left with no income support.
For employees to be eligible for the furlough payment, equal to 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month, the employer must have made a RTI submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for the employee.
However, many companies do not make their RTI submission until the last day of the month or first day of the next month, meaning that many employees will miss out on furlough payments by a matter of hours.
A spokesperson for HMRC confirmed that this was the case.
"The employee being claimed for has to be on a RTI submission on 30 October or beforehand, or they won't be eligible."
New employees who have missed out on furlough via their new employer can be re-employed by their former company, as long as they were on the payroll of that business on 23 September 2020 and a RTI submission was made to HMRC for that employee between 20 March and 23 September.
"Whichever business is employing the person and has them on their PAYE scheme, they are ultimately liable for their NICs and pension contributions."
If the two businesses want to form their own agreement on the matter, then that's up to them. But ultimately it's the company actually furloughing the person that is liable for the NI and pension contributions."
Let's make things complicated!
Tax does have to be taxing.
Tax Investigation Insurance
Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.
You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.
Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.
A Solar Protect policy will enable your Accountant (your tax return agent) to:
- Deal with any correspondence from HMRC
- Attend any meeting with HMRC
- Appeal to the First-tier Tribunal or Upper Tribunal
- Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly
- Premiums are Annual Premiums.
- Premiums are inclusive of 12% IPT.
- Premiums and IPT are due in full in advance / at commencement of scheme.
- There is a NIL excess on all policies.
Please click here for details.
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"