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Contractor furlough - PAYE query

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    Contractor furlough - PAYE query

    hi,

    I am a director of a limited company currently out of any work. I plan to furlough myself and have a simple question on accounts

    If I furlough myself for 4 weeks, from 05 May to 31 May

    1. Should I have a payslip for myself for month of May?
    2. If yes then what would be the amount on payslip assuming I was working until 04th May? and assuming my salary is £719/month?

    Thanks
    Jake

    #2
    1. Yes if you intend to pay yourself for the period not furloughed

    2. Why not multiply £719 by 4/31? That's £92.77

    Comment


      #3
      Originally posted by ladymuck View Post
      1. Yes if you intend to pay yourself for the period not furloughed

      2. Why not multiply £719 by 4/31? That's £92.77
      But there are two payments in May. First is when I was working which works out to be £92.77 and the second is furloughed which would be 80% of (719/31 * 27) where 27 is the days between 5May and 31 May. Should the payslip consist of both these amounts?

      Comment


        #4
        What are you using to do the calculations ? Xero, Freeagent and Brightpay have all introduced new software to calculate furlough, Xero & Brightpay did some free online presentations that I found useful.

        The Furlough portion would be £719/12 * 0.8 = £575.

        I assume youd want to top up the remaining 20% so you still get £719 monthly ? On my Xero package I need to enter this amount as an extra payment like overtime.

        I havnt it done it yet (as you cant enter more than 2 weeks in advance*) but I assume youll, like me, then have to put the figures into the gov.uk CJRS site.

        *It wont accept a furlough start OR end date more than 2 weeks in the future so I guess youd have till wait till mid may ?

        Andy

        Comment


          #5
          Originally posted by andydd68 View Post
          What are you using to do the calculations ? Xero, Freeagent and Brightpay have all introduced new software to calculate furlough, Xero & Brightpay did some free online presentations that I found useful.
          Calculation is not an issue since there are in HMRC videos as well

          Originally posted by andydd68 View Post
          The Furlough portion would be £719/12 * 0.8 = £575.
          Dint understand why you divided £719 with 12?

          Originally posted by andydd68 View Post
          *It wont accept a furlough start OR end date more than 2 weeks in the future so I guess youd have till wait till mid may ?
          HMRC says you can apply minimum for 3 weeks

          My question was slightly different. Do I have to give myself a Payslip for furlough money? as this will go into my PAYE on HMRC self-assesment. So should the value on the payslip be £92 + furlough for May (05May - 31May)?
          Last edited by Jake1000; 7 May 2020, 10:42.

          Comment


            #6
            Originally posted by Jake1000 View Post
            Calculation is not an issue since there are in HMRC videos as well



            Dint understand why you divided £719 with 12?



            HMRC says you can apply minimum for 3 weeks

            My question was slightly different. Do I have to give myself a Payslip for furlough money? as this will go into my PAYE on HMRC self-assesment. So should the value on the payslip be £92 + furlough for May (05May - 31May)?
            Whoops... ignore the 719/12 bit...its just £719

            Comment


              #7
              Originally posted by Jake1000 View Post
              Calculation is not an issue since there are in HMRC videos as well



              Dint understand why you divided £719 with 12?



              HMRC says you can apply minimum for 3 weeks

              My question was slightly different. Do I have to give myself a Payslip for furlough money? as this will go into my PAYE on HMRC self-assesment. So should the value on the payslip be £92 + furlough for May (05May - 31May)?
              Yes..You can apply for minimum of 3 weeks but you cant apply more than 2 weeks in advance. i.e if you are furloughed today, you have to wait a week to apply (assuming you are applying for 3 weeks worth)...so that the end date is 14 days away.

              And yes you still have to do it via Payroll, its still taxable pay, doesnt really apply to us getting £719 but for most perm employees getting max of £2500 there will be Paye and NI to pay on that..its gets more complex too as employers can then claim back the employer NI and the apprentice levy, it gets even more complex if you have pension scheme (although good accountancy software should take care of all this).

              My dates are about similar as yours (Furloughed today), my payslip is (calculated using Xero) :-

              Regular Hours £170.63 (This is non furloughed pay 1st - 7th may)

              Furlough Leave 112.0000 hours £436.83 (This is 80% of 3 weeks pay - today - 31st may)

              Regular Hours 10.0000 hours £112.00 (This is the 20% top up)

              TOTAL £719.46

              Comment


                #8
                I thought the OP was asking what to put on their payslip for the period 1 - 4 May, before being furloughed, bearing in mind they usually pay themselves £719 a month?

                Apologies, I didn't realise the actual question was how much to claim for the furloughed period after 4 May and what to put on any payslip.

                Comment


                  #9
                  Originally posted by andydd68 View Post
                  Yes..You can apply for minimum of 3 weeks but you cant apply more than 2 weeks in advance. i.e if you are furloughed today, you have to wait a week to apply (assuming you are applying for 3 weeks worth)...so that the end date is 14 days away.
                  Thanks - I understand now

                  You might want to see this regarding calculation
                  Xero vs HMRC furlough calculation | AccountingWEB

                  Comment


                    #10
                    Originally posted by ladymuck View Post
                    Apologies, I didn't realise the actual question was how much to claim for the furloughed period after 4 May and what to put on any payslip.
                    No worries - thanks for you response

                    Comment

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