An update on the Coronavirus Job Retention Scheme for annually paid Directors

An update on the Coronavirus Job Retention Scheme for annually paid Directors

Following the latest announcement from the government on the extension to the Coronavirus Job Retention Scheme (CJRS), the eligibility criteria has been updated, which may now allow annually paid directors to be eligible for furlough from 1 November 2020.

The original eligibility criteria meant that many annually paid directors missed out on the original CJRS covering 1 March to 31 October 2020 as, in many cases, their annual salary was processed for 5 April 2020 and the payroll information under Real Time Information (RTI) was submitted to HM Revenue & Customs (HMRC) after the 19 March 2020 deadline for eligibility.

The new guidance available from HMRC states individuals will be eligible to be furloughed if included on a PAYE RTI submission notifying a payment of earnings for the individual between 20 March 2020 and 30 October 2020.

A new monthly deadline has been introduced by HMRC which provides a shorter timescale for claims to be submitted, so it is vital employers act quickly to ensure the furlough funding is not lost. For claims covering November, the deadline is 14 December 2020.

For further guidance on this or if you would like assistance in preparing the CJRS claims and payroll, please contact our Payroll Team on 01633 810 081 or at payroll@kilsbywilliams.com