Covid-19

In support of small business and other organisations the Government are bringing forward legislation to allow employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.

The Government has also introduced a Coronavirus Job Retention Scheme where all UK employers will be able to access support to continue paying part of their employees salary for those employees that would otherwise have been laid off during this crisis.

Additionally VAT registered organisations may defer VAT payments for 3 months

Follow the link to the Government site for more information Covid-19 - Support for Businesses

This short help guide sets out how to use the system to help with these areas.

Statutory Sick Pay (ssp) for Covid-19

Whilst the Government are advising that they will "work with employers over the coming months to set up the repayment mechanism for employers as soon as possible" we consider it important that you keep track of SSP in relation to Covid-19 so that you can make a claim at the required time.

Add COVID-19 SSP account

From the Accounts menu add the standard account 'COVID-19 SSP (Current Assets - Other)'.

Accounts - Add Standard Accounts - tick COVID-19 SSP and then OK

For more on adding a standard account Add from Standard Accounts

Add New payroll element

Create a new payroll element for COVID-19 SSP so that you can distinguish between regular SSP payments and the COVID-19 ones that you will be able to claim a repayment for. Navigate to the Payroll menu to add the new element specifying the newly added nominal account as the posting account.

Payroll - Configure Payroll - Payroll Elements - Click ADD ITEM and enter the details

For more on adding a payroll element Payroll Elements

Recording SSP COVID-19

If an employee takes sick leave and it is in relation to Covid-19 then you should add the payroll element to the employee record.

Payroll - Manage Payroll - for the relevant employee click Pay and Deductions from the Action box

Record their SSP in relation to Covid-19 to be paid. Then process your payroll as usual.

For more on adding employee pay Employee Pay and Deductions

How much can you claim

The value of the amount you will be able to claim will now be held in the newly added nominal account. Note that you are only able to claim a refund for up to 2 weeks? SSP per eligible employee who has been off work because of Covid-19 so only use the newly created SSP pay element for a maximum of two weeks per employee.

How to record the receipt

When your claim is paid by the Government then record, either through your regular bank import or manually, as a Miscellaneous Deposit allocated to the Current Assets - Other' account 'COVID-19 SSP'.

Covid-19 Furloughed Workers

Details have been published by HMRC on how to prepare and claim the Furloughed workers Grant claim. Below we offer a recording and data collection process on the system that will enable users to prepare to make the claim At the time of writing the online claim service is due to open on the 20 April 2020.

Note the user is strongly advised to seek appropriate advice when completing any tax returns that cover any period in which furloughed workers grant was received.

Add Furloughed Workers Wages/Salary account

From the Accounts menu add the standard account 'Furloughed Workers Wages (Expenses)'.

Accounts - Add Standard Accounts - tick Furloughed Workers Wages and then OK

Before the HMRC latest instructions were published some users may have added the account when it was treated as a debtor, it has been moved by the system to be an expense account.

For more on adding a standard account Add from Standard Accounts

Add New payroll element

Create a new payroll element for Furloughed Workers Wages/Salary so that you can distinguish it on the employee payslip and track the total amount that you will be able to claim. Navigate to the Payroll menu to add the new element specifying the newly added nominal account as the posting account.

Ensure that Recoverable Furlough Pay is the selected element type.

Payroll - Configure Payroll - Payroll Elements - Click ADD ITEM and enter the details

IMPORTANT - Before the latest HMRC instructions were published some users may have added the pay element but selected Pay as the element type. This will need to be changed by the user to Recoverable Furlough Pay before any reports are extracted.

For more on adding a payroll element Payroll Elements Ensure that

Recording a Furloughed Worker

If an employee is to be paid under the scheme you should add the payroll element to the employee record and record their portion of their wages/salary to be paid as 0.8 of their total salary.

Payroll - Manage Payroll - for the relevant employee click Pay and Deductions from the Action box

Then process your payroll as usual.

How much can you claim

Note that there is currently a limit of £2,500/employee a month so ensure that your pay element added above does not exceed that value for the individual employee. The total value of the amount you will be able to claim will now be held in the newly added nominal account.

A report to help prepare any claim is available. The report is a source of information but is not a definitive statement of what the user can claim; that is the users responsibility. Full details of what may be claimed is available from the link to HMRC site above.

Navigate to the Payroll Analysis report.

Payroll - Reports - Payroll Analysis

Select the required data window and download the report in XLS or CSV format, the final columns give information on the furloughed pay as well as a pro-rata employers national insurance and any employers pension contribution. The pension is based upon the minimum auto-enrolment rate (currently 3%) less the lower level qualifying earnings.

Make a claim

Navigate to the HMRC claim site. Currently the link is Claim for wages through the Coronavirus Job Retention Scheme

The following information is required:

How to record the receipt

When your claim is paid by the Government then record, either through your regular bank import or manually, as a Miscellaneous Income allocated to an appropriate income account. Note for VAT registered organisations the VAT rate is of course out of scope.

Deferral of VAT Payments

At the time of writing the deferral for VAT payments will apply from 20 March 2020 to 30 June 2020. Although it is not clear we suspect that it will be your responsibility to cancel the direct debit instruction that you may have in place should you opt for the deferral.

Eligibility

All UK VAT Registered Organisations are eligible.

How to access the scheme

This is an automatic offer and no applications required. Organisations will not need to make a VAT payment during this period.

When will payment be due

Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the Government as normal.