Furlough with yearly RTI submissions

[camps]

Hi,

I'm currently trying to Furlough myself under my limited company but the HMRC site states that I'm not eligible as there is no body listed on the payroll, I have been on the payroll for the last 8 years and this shows under the HMRC basic tools app I use to make submissions. I currently make yearly RTI submissions rather than monthly, the last submission made was in March 202) and the is reflected on the HMRC portal. Does anyone have experience of this issue and any advice on what I need to do to qualify? I've been trying to get through to HMRC for a while but the line drops as they are too busy.

TIA,
Mark

[FK1]

Hi,

I'm currently trying to Furlough myself under my limited company but the HMRC site states that I'm not eligible as there is no body listed on the payroll, I have been on the payroll for the last 8 years and this shows under the HMRC basic tools app I use to make submissions. I currently make yearly RTI submissions rather than monthly, the last submission made was in March 202) and the is reflected on the HMRC portal. Does anyone have experience of this issue and any advice on what I need to do to qualify? I've been trying to get through to HMRC for a while but the line drops as they are too busy.

TIA,
Mark

I do that. HMRC basic tools. Annual salary paid once in a year and that month RTI. All other months marked as no payment to employees. I think you need just to open a new year in your HMRC basic tools and RTI your salary in this year. In my case I paid that annual salary in a new year April and receive a very small Furlough payment but I believe it is fair.

[andydd68]

Hi,

I'm currently trying to Furlough myself under my limited company but the HMRC site states that I'm not eligible as there is no body listed on the payroll, I have been on the payroll for the last 8 years and this shows under the HMRC basic tools app I use to make submissions. I currently make yearly RTI submissions rather than monthly, the last submission made was in March 202) and the is reflected on the HMRC portal. Does anyone have experience of this issue and any advice on what I need to do to qualify? I've been trying to get through to HMRC for a while but the line drops as they are too busy.

TIA,
Mark

The RTI submission would of needed to be before March 19th

[FK1]

The RTI submission would of needed to be before March 19th

yearly RTI submissions means it is done once in a year and other 11 months are reported as no payments to employees. So effectively March is covered. I think it is a new Payroll year thing that need to be set and send via the tool. At least it works in my case with my annual payment.

[sludgesurfer]

Similar story to the OP.

I was benched in May with a letter from both clients saying this was due to projects being postponed due to corona. I e-mailed the accountant about potentially furloughing myself. He said with annual payroll submissions at year end, there was no March payment to reference and as such I fell through an administrative crack in the system. He said HMRC were looking into this but not to hold my breath.

For me it wasn't a big deal and I'm not sure if I would have gone ahead with it anyway but this does appear to be a genuine fault with the system.

I don't know whether my accountant tried the 'hack' quoted above but his message to me was very much that applying for furlough with annual submissions at year end wouldn't work.

[Contreras]

Either yourco is on PAYE monthly, quarterly or annual scheme.

To be on the Annual Scheme you must have notified HMRC of this (and it must apply to all employees of the company) and then you will do a single RTI submission in whichever month you elect to have the salary paid. There will be no nil submissions.

This then by definition will fall within March 2019 - Feb 2020 and therefore qualify for CJRS.

If your accountant is reporting nil monthly and one big payment at year end, then it's not yearly RTI.

[andydd68]

Either yourco is on PAYE monthly, quarterly or annual scheme.

To be on the Annual Scheme you must have notified HMRC of this (and it must apply to all employees of the company) and then you will do a single RTI submission in whichever month you elect to have the salary paid. There will be no nil submissions.

This then by definition will fall within March 2019 - Feb 2020 and therefore qualify for CJRS.

If your accountant is reporting nil monthly and one big payment at year end, then it's not yearly RTI.

Yes that makes sense, I do my own accounts and could if I wanted pay nil months, pay double in one or as suggested pay 11 at nil then one annual amount at the end but its still a monthly scheme.

[FK1]

Either yourco is on PAYE monthly, quarterly or annual scheme.

To be on the Annual Scheme you must have notified HMRC of this (and it must apply to all employees of the company) and then you will do a single RTI submission in whichever month you elect to have the salary paid. There will be no nil submissions.

This then by definition will fall within March 2019 - Feb 2020 and therefore qualify for CJRS.

If your accountant is reporting nil monthly and one big payment at year end, then it's not yearly RTI.

Spot on. I am on the Annual Scheme for years. Report the annual salary in April 2020 and have no problem with CJRS so far claiming 3 weeks the third time.

[sludgesurfer]

Thanks for these comments.

The exact phrase my accountant used was that the "HMRC system cannot cope with a yearly salary on furlough".

Your comments have prompted me to challenge exactly what this means. I still doubt that I'll apply. I'm inclined to put furlough for limited company directors in the "too good to be true" bucket particularly when I've been fortunate in only having one month where I've invoiced zero.

Clearly some are taking a different approach. I spoke to one contractor today in a similar line of work who has furloughed himself, his wife and his mother.

[andydd68]

Thanks for these comments.

The exact phrase my accountant used was that the "HMRC system cannot cope with a yearly salary on furlough".

Your comments have prompted me to challenge exactly what this means. I still doubt that I'll apply. I'm inclined to put furlough for limited company directors in the "too good to be true" bucket particularly when I've been fortunate in only having one month where I've invoiced zero.

Clearly some are taking a different approach. I spoke to one contractor today in a similar line of work who has furloughed himself, his wife and his mother.

Yes it can, you can do Furlough with annual salary, its mostly irrelevant to HMRC, all they check is that you had PAYE RTI submission before March 2020, you will also need to use the CJRS calculator to work out 80% monthly pay..although this calculation is separate to your CJRS claim.

Seems to be a lot of posts recently where accountants give duff advice.

*There was a article somewhere that did point out that some with annual salary couldnt furlough as they just missed the march 2020 deadline (this was refering to a true annual pay of just one payment per year not 11 lots of nil and then a single payment)