Coronavirus Job Retention Scheme – Update

9th April 2020 | Uncategorised

We have just received an update from HMRC regarding the coronavirus job retention scheme and the application process. This will affect all employers with furloughed employees and any directors who have or are considering furloughing themselves.

HMRC have announced that the application process and portal will go live on the 20th April. So, from this date businesses will be able to apply for the furloughed employee grants.

We have summarised the key points from the update below;

In Order to Make A Claim You Must; 

  • Have created and started a PAYE payroll scheme on or before 28 February 2020:
  • Be enrolled for PAYE online – this can take up to 10 days: and
  • Have a UK bank account.

How Do I Know if I’ve Enrolled for PAYE Online?

It’s important to remember that even if you have been making payroll submissions for several years, you might not necessarily have a PAYE online account, this is often the case for ‘director only’ PAYE schemes.

HMRC have confirmed that if we are your authorised agents, we will be able to apply on your behalf. To confirm if you have been registered for PAYE online or if we authorised agent status please get in touch with your usual Williamson & Croft contact or email our payroll department at

If we are not your authorised agents, we will apply f or this today and a letter with a code will be sent to the businesses HMRC PAYE address. You will need to provide us with this activation code. In addition, we are recommending that the business also creates its own PAYE online account, follow the link below and select create sign in details. Our payroll department can assist with this process and provide the PAYE and Accounts office reference which you will need. Directors

HMRC guidance confirms our understanding that directors, including those who are directors of their own personal service company, can be furloughed.

It is important to remember that if you are furloughed you shouldn’t be working unless you need to carry out specific duties to fulfil your statutory obligations (e.g. filing the company accounts and other duties imposed by the Companies Act). The guidance from HMRC states, ‘furloughed directors should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provide services to or on behalf of their company’.

Tax Consequences of The Grant

The grant paid to you is subject to tax, it is included within the business taxable profits for income tax or corporation tax purposes. The salary payments and associated NIC and pension costs continue to be tax-deductible in the usual way.

As always, if you would like any further information on your options or any of the other changes announced, please get in touch with us. Feel free to contact our offices on 0161 399 0121 / 0151 303 3112 or by email

Stay safe and kind regards,

Williamson & Croft LLP

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

Global Association


Employment Allowance increased as of April 2022

In the Spring Statement in March, Chancellor Rishi Sunak introduced several new measures to help the public combat the current cost-of-living crisis. One of these measures was the boost to Employment Allowance for UK families and businesses. What is Employment...

Trust Registration – Registrable Express Trusts

UK express trusts and some non-UK trusts in existence on or after 6th October 2020 must be registered with the UK Trust Registration Service (TRS) by 1st September 2022.  On 6th October 2020, as part of the UK’s implementation of the Fifth Money Laundering Directive...


0161 399 0121

York House, 20 York Street, Manchester, M2 3BB

0151 303 3112

Avenue HQ Liverpool, 17 Mann Island, Liverpool L3 1BP

Contact us

© Copyright 2020 Williamson & Croft LLP - Registered No OC402211