Reporting payments under RTI for Coronavirus Job Retention Scheme

https://www.gov.uk/guidance/reporting-payments-in-paye-real-time-information-from-the-coronavirus-job-retention-scheme

The government have issued further guidance on how and when to report RTI payments under CJRS. Follow the links for the full text.

In summary:

If you’re using the grant to pay wages

You should pay employees on their contractual payment date so that employees receiving Universal Credit are not affected.

Any grant paid to you, is to be used to pay wages… and… be treated … wage payment …subject to all payroll deductions… reported to HMRC via Real Time Information… on or before the date that it is paid…

If you’[ve] already paid

If you… pay your employees during … furlough, in advance of receiving any payments… you do not need … another FPS … for this amount … already reported.

If you have not paid any of your employees … in a tax month

You must submit an EPS stating you have not paid any employees in that tax month…

If you only pay your employees 20% of their normal wage until the Coronavirus Job Retention Scheme grant payment is received

… operate PAYE, deducting … tax and National Insurance … due on the reduced … payment… and … report … by sending a FPS … on or before the payment date.

You must not send FPS reporting payments you expected to make, but have not yet made. When you pay … your employees after receiving the grant payment, … send FPS showing the payment…

If you reported wages to HMRC in March 2020 that you did not pay to your employees

You will need to submit an Earlier Year Update or closed year Full Payment Submission to reflect what you paid in wages. When you receive the grant to pay as wages, you should pay your employees on their contractual payment date for the current tax month. You should also submit a 2020-2021 Full Payment Submission, on or before the date you make the payments to your employees.

The FPS must only include wages you have actually paid to your

You must pay employees on their contractual payment date so that employees receiving Universal Credit are not affected by this.

If you pay the full amount … during furlough, but only claim back 80%…

If you choose to top-up employee wages above the 80% scheme grant, that is your choice and at your own expense.

You must deduct tax and National Insurance Contributions on the full amount paid… When the grant is paid by HMRC it will reimburse the wages already paid.

You do not need to make another FPS for this amount.

If you have not paid anything … for March or April

If you are making a payment for March and April in your employee’s April wage, you must deduct tax and National Insurance Contributions on that full amount.

You must not back date the March payment as if it was paid in March.

If you have paid your employees and submitted your Real Time Information submission early

You should continue paying your employees on their contractual payment date and submit FPS on or before… so that employees receiving Universal Credit are not affected.

PAYadvice.UK 24/4/2020

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