COVID-19: Let us know what you think of the Government's unprecedented support for workers...

Thanks Peter, I appreciate it. It’s all a bit confusing at the moment given the circumstances. If I ever get a hold off HMRC, I’ll keep the forum posted.

Lynn

Hi Steve, apologies if this isn't the right forum but the pages showing FAQs related to Covid-19 do not appear to have links on them. Please could you advise where these can be accessed?

“You can claim for any regular payments you are obliged to pay your employees. This includes wages, past overtime, fees and compulsory commission payments. However, discretionary bonus (including tips) and commission payments and non-cash payments should be excluded.”

any ideas what Compulsory commissions could be ?

Commission you are contracted to pay as part of basic remuneration, e.g. a fixed percentage of all sales, or value of work completed.

In respect of the updated guidance on the CJRS and the question of compulsory commission. I am unclear on whether this means that you can include the compulsory commissions you have paid historically when calculating the 80% [so either on the set month or average basis] or that you can include any compulsory commission that was due for payment in for example April 2020 when calculating the 80% [subject to the £2,500 cap] for that month.

Does anyone seen any further guidance on this point?

Treat as you would any other "variable" payment.

The additional rules that are being set are clearly not cancelling previous practices or procedures but are exceptional "on top" or "variation" to existing statutory requirements.

If someone is paid by commission only, or as a pre-determined part of their salary, that is a contracted agreement, therefore it is (self evidently) a "compulsory" payment that must be made to them to fulfil their contract, but it is not a fixed sum, (and might even be £0.00 if no commission has been earned in a given month).

Thus the relevant sum is calculated for furlough as an average in the same way as it, or any other variable amount, would normally be for leave or other authorised absence.

The "optional" payment of commission (or other "bonus") "gifted" at the employer's discretion however, being payment of a sum not part of the pre-agreed remuneration for the employee's role, would not be a compulsory payment and so is excluded from the subsidy.

What has changed?

Any other interpretation would mean that someone on a commission only or part-commission contract (thus earning no commission during the furlough period) would be entitled to no payment for commission going forward during their absence, so why would there be any necessity for HMRC to say that this payment (of nothing) can be included? (The payment of commission already earned NOT being payment for the furlough)

update fresh off press qualifying period has been reviewed

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

Any employer with a UK payroll and a UK bank account will be able to claim, but you must have been on your employer’s PAYE payroll before or on 19 March 2020 and notified to HMRC on an RTI submission on or before 19 March 2020. This means your employer must have made an RTI submission notifying payment in respect of you to HMRC on or before 19 March 2020. If you were employed as of 28 February 2020 and on payroll (i.e. notified to HMRC on an RTI submission on or before 28 February) and were made redundant or stopped working for your employer prior to 19 March 2020, you can also qualify for the scheme if your employer re-employs you and puts you on furlough

You can be on any type of contract, including a zero-hour contract or a

Doesnt this potentially throw a spanner in the works for some employers who furloughed people who started before the 28th Feb (was widely accepted I think that "on payroll before 28th Feb" meant start date)? It hasnt referred to an RTI submission date previously....e.g. we employed someone who started on the 26th Feb, RTI not submitted until 25th March, therefore they now don't qualify?

This seems to be another addition where the honest answer seems to be "maybe". It seems to present more questions than clear answers in that regard.

I am tempted to think someone has been doing some counting up and realised what Boris's largesse is going to cost, and this is the start of the back-tracking, but I sincerely hope I am wrong, because the confusion and potential difficulties will hurt a lot of people, not least those who have to explain it to distressed or angry employees... and guess who that is likely to be....?

I shall try to think positively......

P

Gosh this is pretty bad, we almost rehired someone who would now not qualify if Im reading the new guidance right......and I know lots of companies who are going to be stuck if so. Luckily we have only got the one that we have furloughed that potentially doesnt qualify.

Definitely more questions than answers now!