UK: timing of COVID-19 job retention scheme claims and further guidance for employers on social distancing

This morning Jim Harra, First Permanent Secretary and Chief Executive, HMRC, and Cerys McDonald, Director, CV-19 policy co-ordination, HMRC, gave evidence to the Treasury Committee on the Coronavirus Job Retention Scheme. The evidence included that:

• HMRC is iterating the eligibility guidance in an almost live fashion as they receive feedback with specific examples – so further changes are to be expected.
• They are going to check any claims they think are high risk before they pay out, but otherwise are relying on individuals to contact them if they are aware of employers abusing the scheme and, further down the line, they will have the right to check claims and claw back funds (or consider criminal prosecution if there is fraud) - although they haven't developed a plan for this as yet.
• They started live testing of the online claim system, with a small number of invited employers, this morning. Later this week they will publish practical operational guidance on how to compile claims ready to upload.
• Employers will be able to upload claims from 20 April, and this will be possible 24/7 with a queueing system on the relevant webpages. This should enable payments for 30 April payrolls – it will take 4 to 6 working days after the claim is submitted for the money to get to the employer's bank account. HMRC are determined and on track to achieve these dates. The priority is to ensure most employers can 'self-serve' and upload reimbursement claims without requiring assistance. Employers will be able to claim up to 14 days before they run payroll.
• Discussion focussed primarily on the impact on individuals of the 28 February payroll cutoff and the exclusion of those on reduced hours or doing work for the employer.  There was no examination of the extent to which employers might be required to show that their operations have actually been affected by the outbreak in order to access the scheme, although there was brief mention that the purpose of the scheme is to avoid people having to be made redundant because of the outbreak and to enable them to stay connected and return to their jobs when things improve. This issue was raised in relation to the scheme for self-employed individuals, and in that context it was confirmed that there were no plans to check this and that they were largely relying on people to "do the right thing"; the view is that the vast majority of self-employed individuals' businesses will be affected by the outbreak so it would not be fruitful to pursue this.
• The ability to rotate employees on furlough (subject to the 3 week minimum) was confirmed.
• HMRC has no further information as to when the Treasury would make a decision whether to extend the scheme beyond 31 May 2020.
• "Time has been the enemy of perfection" in terms of devising the scheme.  The Chair of the Committee noted that there were a number of "hard edges" regarding policy which they will be taking up with Government ministers directly.  He also noted that online guidance will be critical in terms of ensuring it is entirely comprehensive, provides really clear answers, and is easy to navigate.

Other developments yesterday include:

• Acas updated their guidance on using holiday;  this sets out Acas's view that holiday during furlough must be paid at the full (pre-furlough) pay rate.  There is also a new section encouraging employers and employees to be flexible over the issue of holiday.  It is hoped that HMRC will address the issue of holiday and furlough in one of the forthcoming iterations of their guidance on the scheme, preferably sooner rather than later!
• the Government has published much more detailed guidance on social distancing in the workplace.  The general guidance for business and employers now includes general principles applicable to both customer-facing and non-customer-facing businesses, plus new sections on shift-working and staggering processes, and staff canteens and rest areas.  Detailed sector specific guidance has also been made available, covering shops running pick-up or delivery services, tradespeople, construction, manufacturing and processing businesses, retail, logistics businesses, transport, waste management, outdoor businesses, farming, fishing, cargo-shipping and other offshore work.