How do I claim HMRC leave pay? – The sun


LOCKDOWN has seen millions of workers benefit from a 20 percent pay cut on their wages, which is complemented by emergency relief while we are at home fighting coronavirus.

The scheme announced by Chancellor Rishi Sunak in March came into effect today (April 20) – but what exactly does the word “on leave” mean?

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    British Chancellor of the Exchequer, Rishi Sunak, has announced that the leave arrangements will be operational by the end of April
British Chancellor of the Exchequer Rishi Sunak has announced that the leave arrangements will be operational by the end of AprilCredit: Copyright 2020 The Associated Press. All rights reserved

What are workers on leave?

Workers on leave are those who cannot work due to the coronavirus pandemic because their workplaces have been forced to close or downsize.

These are not people who have been laid off.

Employers are now able to access assistance to continue paying part of their staff wages to avoid layoffs.

Mr. Sunak has promised to pay 80 percent with a maximum of £ 2,500 a month in wages to those unable to work under the Coronavirus Job Retention Scheme.

    4,000 easyJet employees in the UK have been put on leave1
4,000 easyJet employees in the UK have been put on leaveCredit: EPA

What is leave on leave?

Employers wishing to access the job retention program, which has been expanded to include those employed since March 19, should discuss with their employees their classification as a worker on leave.

This would mean that employees are kept on the payroll, rather than being laid off.

According to the Government, staff on leave should not undertake work for their employer during the program.

This allows employers to claim up to 80 percent of wages – with a limit of £ 2,500 per month.

The Department of Business, Energy and Industrial Strategy said, “To be eligible for this program, you must not undertake work for them while you are on leave.

“This will allow your employer to claim a subsidy of up to 80% of your salary for all employment costs, up to a ceiling of £ 2,500 per month.

“You will remain employed during your leave. Your employer may choose to fund the differences between this payment and your salary, but it is not mandatory.

“If your wages are reduced as a result of these changes, you may be eligible for assistance through the social protection system, including universal credit.”

Who can be put on leave and how can I claim my salary from the government?

Any UK employer can apply for the leave program, including companies, charities, recruitment agencies and public authorities.

Employers have varied, as easyJet, Disney and Premier League clubs like Newcastle have already put some of their employees on leave.

The government also asked whether employers could pay the additional 20% so that workers did not run out of wages.

But it’s up to employers to pay wages on time or wait until the leave plan is paid.

The plan is expected to be paid by the end of the month, with employers able to apply from April 20.


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To be eligible for the program, you must have created and started a PAYE payroll system no later than March 19, 2020, register for PAYE online and have a UK bank account.

To access the program, your employer must meet the following conditions:

  • Designate employees who cannot do their jobs due to government coronavirus control measures
  • Notify these employees of their new “leave on leave” status
  • Submit information to HMRC on employees on leave to set up a reimbursement system and existing systems that will facilitate payments.

Find out more about the procedure for submitting your application from 8 a.m. on Monday 20 April here.

Can I accept another job during my leave?

Technically yes, as long as you don’t break your original contract and violate the lockout protocol.

Some contracts state that you cannot work for rival employers or must obtain authorization before earning income elsewhere.

You can ask your HR team if you are not clear or if you want to check your terms of employment.

It is highly recommended that you speak to your boss before taking up another job as you are still their employee.

Do I have to pay vacation tax?

You will continue to be paid by your employer while you are on leave.

You will receive at least 80 percent of your regular salary and will still pay taxes on your income.

Your employer will then deduct income tax, national insurance contributions and any other deduction that it would normally make.

Chancellor Rishi Sunak says coronavirus leave payments should start in late April


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