08Jan

Updated guidance on Furlough

HMRC has updated its guidance to state that employers can (not must) furlough employees whose health has been affected by coronavirus or any other conditions, this includes if they are unable to work from home, or working reduced hours, because they:

  • are clinically extremely vulnerable, or at the highest risk of severe illness from coronavirus and following public health guidance
  • have caring responsibilities resulting from coronavirus, such as caring for children who are at home as a result of school and childcare facilities closing, or caring for a vulnerable individual in their household

This should resolve any area of uncertainty, which is whether parents who stay at home to look after school-age children are eligible for furlough.

Visit HMRC guidance for more information: https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme

If you would any further information on the latest guidance then please get in touch with a member of the Ward Williams HR team and we will be delighted to assist.

18Dec

Furlough Scheme extended to 30 April 2021

The Chancellor, Rishi Sunak, has announced the furlough scheme is being extended for an extra month, until the end of April 2021.

The government will also continue to pay 80% of wages until the end of the scheme, i.e. that the government contribution will not be reduced at the end of January.

More information can be found on the government website:

https://www.gov.uk/government/news/chancellor-extends-furlough-and-loan-schemes
16Dec

Top 5 HR trends for 2021

As we near the end of the year, it’s time to look at the emerging HR trends for 2021. 2020 did not exactly go to plan and the pandemic will certainly influence HR trends going forward, so what will employers focus on embracing in 2021

1.Mental Health and Wellbeing

Employee wellbeing is without doubt linked to productivity. Many employers are very supportive and recognise the importance of supporting the workforce. Mental health first aiders are common and helplines are available for employees. HR will have an increased agenda to ensure that support is provided and to ensure that everyone feels comfortable to talk about any issues. This will become more of a challenge as remote working stays and uncertainty around job security continues with the economic downturn, we face for 2021.

2. Diversity and Inclusion

It is likely that 2021 will be the biggest year to-date for Diversity and Inclusion. More and more organisations worldwide are beginning to understand the importance of a diverse, inclusive and collaborative working environment.  Creating a transparent working environment where your team feels comfortable and productive is key for any successful business.  However, removing pay gaps, maintaining a gender-equal workplace isn’t enough. Instead employers might want to build a culture where everyone’s voice is heard without repercussions and where every employee feels empowered to do their best work.

3. Remote working

Remote working will continue well into the New Year and in all likeness will create permanent trends. There are plenty of perks to remote working that are being realised although these are balanced with concerns around employee productivity and focus. 2021 will be about trying to find a middle ground that works for both parties. Permanent remote working will come with its challenges – IT infrastructure will be re-aligned; dining room tables will need to be replaced with proper home office space and team collaboration may become a struggle.

4. Upcoming Technology

Technology is changing faster than ever before, which means your organisation could change overnight. This potentially frees up your employees’ time to drive a bigger customer base. Technology can improve the efficiency of your administration, compliance or HR files by having all of your documents on a secure online database. HR systems can help keep track and stay on top of schedules (such as appraisals and recruitment). This will help free up staff and get more done, instead of drowning in paperwork. These systems capture a lot of employee data, which can help with company insights as well as actionable strategies.

5. Employee Experience

Concentrating on creating a great employee experience is expected to be a key priority this year. After all, well-looked after employees have a huge impact on an organisation as a whole from fewer sick days and increased employee retention to a more dedicated workforce and much easier recruitment drives. The employee experience is the journey that the employee will take within your organisation. This starts with attracting and hiring talent to onboarding and engaging new employees. It then moves on to support and development and ends with offboarding. While employee engagement is the end goal, employee experience is the means to achieve that end.

If you have any questions on any of the above, please get in touch with the office: sally.phillips@wardwilliams.co.uk or call 01932 830664.

07Dec

What are your HR resolutions for 2021?

With the end of 2020 fast approaching, we start to consider our goals and resolutions for the year ahead. What HR resolutions could your business set to help you on the right path for a successful and prosperous 2021?

1. Take time – January is the perfect opportunity for new beginnings; look and what you have and what you don’t have, take the time to review what you have in place, and see what needs a refresh.

2. Be committed with your HR practices – far too often problems arise through sheer lack of process. Have everything in place from the get go, relying on policies and procedures after an event won’t do you any favours.

3. Improve – How can you improve the practices you have in place? You might have a fantastic and robust performance review process, but do you use it? Do Managers and Employees find it useful? Have you even asked?

4. Keep up to speed – commit to being in the know with HR and Employment Law changes, or, if you don’t have the time, engage with a company that will and can ensure your business is compliant.

Need a hand? If you would like more information as to how you can set and achieve your workplace resolutions to make 2021 your best year yet, please get in touch with the office: sally.phillips@wardwilliams.co.uk or call 01932 830664.

20Nov

New time limits for Furlough claims

New timescales have been announced for lodging a furlough claim with HMRC. Generally, the claim has to be submitted within two weeks of the end of the previous calendar month unless there is a reasonable excuse for missing a deadline for making a claim in time.

The deadlines are listed below:

Claim for furlough days in:          Claim must be submitted by:
November 2020 14 December 2020
December 2020 14 January 2021
January 2021 15 February 2021
February 2021 15 March 2021
March 2021 14 April 2021

The HMRC guidance states that the following examples ‘may’ amount to a reasonable excuse for missing the deadline:

  • your partner or another close relative died shortly before the claim deadline
  • you had an unexpected stay in hospital that prevented you from dealing with your claim
  • you had a serious or life-threatening illness, including Coronavirus related illnesses, which prevented you from making your claim (and no one else could claim for you)
  • a period of self-isolation prevented you from making your claim (and no one else could make the claim for you)
  • your computer or software failed just before or while you were preparing your online claim service issues with HMRC online services prevented you from making your claim
  • a fire, flood or theft prevented you them from making your claim
  • postal delays that you could not have predicted prevented you from making your claim
  • delays related to a disability you have prevented you from making your claim
  • a HMRC error prevented you from making your claim

If you would like to know more about the latest furlough guidance then please get in touch with Sally Phillips on: sally.phillips@wardwilliams.co.uk or call 01932 830664.

17Nov

Changes to claim period for the CJRS

Updated 16th November 2020

The Coronavirus Job Retention Scheme CJRS guidance has just been updated with an important change.

For claim periods starting on or after 1 December 2020, an employer cannot claim for any days on or after 1 December 2020 during which the employee was serving a contractual or statutory notice period for the employer (this also includes people serving notice of retirement or resignation).

More information can be found on the HMRC website here.

If you would like any further information on the new changes to the Coronavirus Job Retention Scheme CJRS. Then please get in touch with the office, Or email hrservices@wardwilliams.co.uk.

06Nov

The CJRS extended until end of March

Originally due to end on 31 October, the Coronavirus Job Retention Scheme (CJRS) will now remain open until 31 March 2021. The scheme had already been extended to December 2020 following the announcement of a new national lockdown for England.

For claim periods running ‘through to January 2021’ (so we assume that means all of November and December at least and most probably January too), employees will receive 80% of their usual salary while on furlough, subject to a cap of £2,500. The CJRS extension will be reviewed in January to examine whether the economic circumstances are improving enough for employers to be asked to increase contributions.

Meanwhile, employers will be asked to continue to cover the costs of employer national insurance and pension contributions for hours not worked. According to the government: “For an average claim, this accounts for just 5% of total employment costs or £70 per employee per month.”

Employers concerned about how to implement changes to working agreements retrospectively can be reassured that as long as they are consistent with employment law, furlough agreements made retrospectively that have effect from 1 November 2020 can support a furlough grant claim. However, these retrospective agreements must be in place on or before 13 November 2020 to be relied on for this purpose.

https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme

The government will not pay the Job Retention Bonus in February but, according to an economic factsheet accompanying the latest announcements, will instead redeploy a retention incentive “at the right time”. So no idea what that means in practice.

The Job Support Scheme, originally due to replace the CJRS on 1 November but superseded by the furlough extension, could still be revived at a later date.

Further support for the self employed has also been announced with the level of the third SEISS grant increased to 80% of trading profits covering November to January for all parts of the UK. It is calculated based on 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500.

The window for claiming the third grant will open on a phased basis from 30 November and HMRC expects to pay grants within six working days of the date of the claim.

However many small business owners (for example those that took dividends rather than a salary linked to the performance of their business) continue to miss out on any government support. An opportunity has been missed to address this unfairness.

The government also announced a raft of further measures including:

  • cash grants of up to £3,000 per month for businesses which are closed
  • £1.1bn to local authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly
  • plans to extend existing government-backed loan schemes and the Future Fund to the end of January, and an ability to top-up Bounce Back Loans
  • an extension to the mortgage payment holiday for homeowners

Access to the existing government-backed loan schemes has been a vital source of additional funding for many businesses but remains problematic for some depending on who a business banks with.

23Oct

Job Support Scheme – more details

Updated 23rd October

Chancellor Rishi Sunak has announced today a further amendment to the Job Support Scheme, which is due to begin on 1 November 2020.

The schemes will now be known as JSS Open and JSS Closed, the latter being for those businesses which have been required to close under lockdown regulations.

Under JSS Open:

  • An employee will need to work at least 20% (no longer 33%) of their normal hours.  They will receive normal pay for the hours they work, and two-thirds of pay (subject to a cap which bites against those earning more than £3,125 a month) for the hours they do not work. 
  • For that two-thirds top-up, the government will pay 61.67% and the employer will pay 5%, plus NI and pension contributions on the full amount.  That is a significant change from the previous 50:50 split towards the two-thirds top-up, shifting the financial cost overwhelmingly to the public purse.  
  • There must be a written agreement between employer and employee, agreeing to the changes.

Under JSS Closed:

  • The position remains that the employee will receive two-thirds of their normal wages, funded by the government (again, with a cap biting against those who earn more than £3,125pm). 
  • The employer will have to pay the NI and pension contributions on that amount.  Again, there must be a written agreement between employer and employee, agreeing to the changes.

HMRC has published a policy paper containing more details on the Job Support Scheme.

If you require any further help or assistance with the new changes. Then please get in contact with a member of the Ward Williams HR on 01932 830664 or email sally.phillips@wardwilliams.co.uk.

23Oct

Furlough cash fraudulently claimed

Updated 23rd October 2020

British companies may have fraudulently claimed up to £4 billion intended for furlough workers – with £2 billion being taken by organised criminals – a damning report has found.

The National Audit Office (NAO) estimated that fraud and error on the furlough scheme could have ranged from five to 10 per cent on claims totalling £39.3 billion. Fraud on the first round of the self-employed scheme could have ranged from 1-2 per cent.

Of these, it is ‘almost certain’ that more than half – around £2billion – has been paid to organised criminals posing as legitimate businesses to make claims under the emergency scheme, tax officials have told the NAO.

A fifth of the money wrongly paid out is blamed on error, either by employers or HMRC.

The spending watchdog had praised the government for rolling out support schemes for employees and the self-employed ahead of schedule when COVID-19 forced much of the economy to close down in March.

But the NAO said that under huge pressure to set up the scheme it did not have time to fully test the schemes and as a result the total scale of fraud and error was likely to be considerable.

Around 9.6 million people were put on furlough through the Coronavirus Jobs Retention Scheme, while another 2.6 million were helped through the Self-Employment Income Support Scheme.

If you require any further help or assistance with the new changes. Then please get in contact with a member of the Ward Williams HR on 01932 830664 or email sally.phillips@wardwilliams.co.uk.