How to claim furlough funding from HMRC

HMRC is working on furlough website

Many business owners are waiting for details of how to claim furlough funding from HMRC. Details of the Coronavirus Job Retention Scheme (CJRS) are gradually being released by HMRC.

How do I claim my furlough funding?

HMRC will pay funding claims within 6 working days of an online application. Businesses and agents that are authorised to act on behalf of clients for PAYE matters, will be able to claim through an online portal on the HMRC website.

Some payroll bureaus and payroll agents are set up as “file only agents”. File only agents will not be able to access the furlough funding service due to data protection reasons.

Alterledger has full agent authorisation for all our payroll clients so we will able to claim the furlough funding on your behalf. We have found that applications we have submitted have been paid in less than a week.

What information will I need for furlough funding?

You will need to calculate the amount you are claiming. Alterledger can help you calculate what should be paid to your employees. HMRC will retain the right to retrospectively audit all aspects of your claim.

To claim, you will need to provide the following:

your PAYE reference number
the number of employees being furloughed
the claim period (start and end date)
amount claimed (per the minimum length of furloughing of 3 consecutive weeks)
your bank account number and sort code
your contact name
your phone number

You should make your claim using the amounts in your payroll – either shortly before or during running payroll. Claims can be backdated until the 1 March where employees have already been furloughed.

You’ll need to provide the following to make a claim:

The bank account number and sort code you’d like HMRC to use when they pay your claim.
The name and phone number of the person in your business for HMRC to call with any questions.
Your Self-Assessment UTR (Unique Tax Reference), Company UTR or CRN (Company Registration Number).
The name, employee number and National Insurance number for each of your furloughed employees.
The total amount being claimed for all employees and the total furlough period.

How do I access to HMRC funding website?

The claim process for furlough funding is accessed from your online HMRC account. If you have access to your PAYE account through the government gateway you will be able to start your application.

Can I call HMRC?

HMRC are expecting phone demand to be beyond their capacity to offer a normal service. Therefore, the online service is designed to be self-serve with guidance in place. You are likely to need the assistance of an accountant to navigate the system. Please contact Alterledger if you don’t already have an agent set up for your PAYE.

How do I appoint an agent for PAYE?

It can take up to 6 weeks to appoint an agent for your PAYE with HMRC. There are electronic methods of appointing an agent that are quicker, but you will require access to your online account with HMRC for these. Alterledger is a fully digital practice. All our systems from client sign up to payslips are managed online in the cloud.

Can I switch payroll provider mid-year?

The best time to switch payroll provider and payroll software is right now. The PAYE year finished on 5th April 2020 so you can start using a new provider without any problems of migrating data.

It is possible to change payroll software at any point in the year, but this is not advisable as it is all too easy to run into problems with moving data between systems.