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Job Retention scheme guidance

24 - 04 - 2020

What is the Coronavirus Business Interruption Loan Scheme (CBILS)?


The UK Government has announced a scheme to provide finance facilities for smaller businesses experiencing cash flow difficulties from trading due to the coronavirus pandemic. The scheme has been expanded from the initial announcement to include smaller businesses who would previously have been able to access commercial facilities from the financial providers

Guidance Note


Coronavirus Job Retention Scheme (CJRS)


Employers Claim Guidance


The CJRS is now open for Employers to make claims for furloughed staff. Please be aware that this note is based on the information published as at 23 April 2020 and is intended to provide guidance on how Foremans LLP believe at this juncture the scheme will be operate. The below is based on Foremans LLP’s interpretation of the available information and HMRC guidance.


What is the Coronavirus Job Retention Scheme (CJRS)?


The UK Government has set up the Coronavirus Job Retention Scheme to help employers who cannot maintain their current workforce due to the business operations being severely affected by coronavirus. The idea is to temporarily suspend the employment so that employees can be retained until after the pandemic is over. The employment, therefore, does not have to be terminated now.


Who can claim?


Any entity with a UK payroll can apply.


An employer must have:


·         Created and started a PAYE payroll scheme on or before 19 March 2020 (previously advised as 28 February 2020);

·         Enrolled for PAYE online;

·         A UK bank account.


Who can an employer claim for?


An employer can only claim for furloughed employees that were on their payroll on or before 19 March 2020 and were notified to HMRC on a Real Time Information (RTI) submission on or before 19 March 2020.


How does an employer furlough an employee?


To be eligible for CJRS an employer must agree with the employee that they are a furloughed worker. The employer should discuss the situation with the employee and agree the furlough leave as a temporary change to their contract of employment. Any changes should be agreed in writing. A record of this communication should be kept for 5 years.


What does furlough mean?


A furlough is a temporary period of leave due to the special needs of an employer. Furloughing an employee means that they can no longer work within the business but are retained on the payroll of the business.



How long does an employee have to be furloughed for?


The minimum period you can furlough an employee for is 3 weeks. An employee can be furloughed, return to work and then be furloughed for a further period.


Do all employees of the business have to be furloughed?


No. Only those employees the employer has no work for.


What period can employees be furloughed for?


The CJRS runs from 01 March 2020 until 30 June 2020. Please note that this period has already been extended once and is subject to change.


What Information do I need to claim?


1.      The number of employees being furloughed;

2.      The dates employees have been furloughed from and to;

3.      Details of the employees being furloughed:

·         Name

·         NI Number;

4.      Employer PAYE reference number;

5.      Unique Tax Reference (UTR):

·         Limited company – Corporation Tax UTR

·         Any other business - Self Assessment UTR

6.      Business UK bank account details;

7.      Organisation’s registered name;

8.      Organisation’s address.


You should ensure you have all this information before you try to claim.


You will also need to calculate how much you are claiming before accessing the HMRC online portal. The amounts to be claimed should be split between salary to be paid to furloughed employees, employer’s NI and total pension claim.


Can I use an Agent to claim?


Yes - if you have an agent that has authorisation to act for you on PAYE matters online. They can make the claim for you.


No -  if you have an agent that merely files your RTI and has no authorisation with HMRC on your behalf.


Please note Foremans can act as an agent to make claims for clients provided we have the PAYE online access.


How do I access the online portal to make a claim?


To access the system on GOV.UK you or your agent will need to have:


·         A Government Gateway ID and password

·         An active PAYE enrolment


Can I make more than one claim?


No. The application needs to be done in one session and you must claim for all employees in the claim period at one time. There is no save and return option which is why you must have all the information before attempting to make your claim. Sessions will time out after 30 minutes of inactivity.


Employers can only submit one claim every 3 weeks which is the minimum period an employee can be furloughed for at any one time.


Will I receive confirmation of my claim?


Once you have submitted your claim you will see a confirmation screen showing a claim reference number. You should make a note of that claim reference number before exiting the portal. Please note NO email confirmation of the claim will be sent and this will be your only opportunity to note the claim reference number. HMRC reserve the right to audit claims retrospectively.



Further useful information can be found at:


If you would like to discuss any of the issues noted above, please contact us on:


01244 625 500 or 01978 364 000


Whilst all due care and attention has been taken in the preparation of these notes no liability can be accepted for any omission or item contained therein.

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Number Of Weeks
Tax Code
Primary Hours
Primary Rate In £
Secondary Hours
Secondary Rate In £
Other Hours
Other Rate In £
Weekly Bonus In £
Total Anticipated
Income For A Week
Anticipated Annual
Pre Tax Income
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Post Tax Weekly Pay
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Annual Take Home Pay
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Annual Take Home Pay


Measured against PSC
Measured against PSC
Measured against PSC
Worse off
Weekly by :-
Worse Off
Annually by :-
Measured against AGENCY
Measured against AGENCY
Measured against AGENCY
Worse off
Weekly by :-
Worse Off
Annually by :-

Fixed Data


Tax Code L between 0 and 999.
Tax Rate
Personal Allowance
Basic up to
Higher above

Statutory rates

National Minimum Wage
Holiday Pay
Mileage Rates
Per Mile
Up to 10,000 miles
10,000 miles



Corporation tax

Small Company Tax Rate

National insurance

Primary Threshold
Secondary Threshold
Employers NI between PT and UEL
Employees NI above UEL
Employees NI
Class 4 NI between LPL and UPL
Class 4 NI above UPL
Class 2 NI
Annual LEL
Annual UEL / class 4 upper profits
Class 4 Annual lower profits limit
Weekly PT
Weekly LEL
Weekly UEL


Holiday pay accrual
Is Holiday Pay being accrued?


Agency Uplift Applied



  • The user is over 21 and subject to tax in the UK
  • The user wishes to minimise their tax liability
  • The user is subject to national insurance i.e.he/she is not over retirement age
  • Only current tax rates and limits are applied
  • No tax mitigation payments are made e.g. pension contributions
  • Only 3 digit letter 'L' tax codes shown in the drop down list can be entered 
  • The user does not have a turnover greater than £100,000 where fewer reliefs and or higher taxes may apply


  • All miles claimed as expenses are for business use using a personally owned car or van
  • All other expenses claimed are wholly, necessarily and where appropriate exclusively for the benefit of the business

Foremans LLP Charges

  • Foremans fees associated with Limited Company, Sole Trader or Umbrella are as per published rates
  • Foremans current Service Costs are allowed for in all calculations.

Holiday Pay

  • Holiday pay is accumulated week by week by Umbrella or Agency employer but paid out during the year


  • Limited Company or Sole Trader will be VAT registered
  • Limited Company or Sole Trader will take advantage of Flat rate VAT
  • Flat rate applied includes the benefit of the additional 1% applicable to the first year of VAT registration

Limited Company Conditions

  • One director / one shareholder in a Personal Service Company
  • Director of Personal Service Company elects to vote for 100% dividend after salary, costs and expenses
  • Director's salary is maximum salary to the primary threshold for NI
  • The Limited Company is trading normally i.e it is not subject to IR35 and is not a Managed Service Company


  • The Current tax rates are taken from the Fixed Data Table
  • The current Value Added Tax Rate is 20% and is applied to all invoices and expenses as appropriate
  • The Director's Salary is fixed in relation to National Insurance thresholds. Higher Rate Taxpayers should consider the advantages and disadvantages of a larger annual salary or bonus
  • Higher Rate Taxpayers may wish to consider the advantages and disadvantages of shared ownership of their business
  • Users with a tax code other than three digits and letter "L" may telephone or email our Development Department to request a detailed calculation
  • Generally the use of an Umbrella rather than an Agency payroll is only efficient if sufficient weekly expenses are allowable and claimed
  • The expenses claimed under an Umbrella should not prevent the proper operation of National Minimum Wage
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Foremans LLP
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