Coronavirus: Reporting employees' wages to HMRC when you've claimed through the Coronavirus Job Retention Scheme

News article

Find out how and when to report employees' wages to HMRC using the PAYE Real Time Information system

If you're claiming a grant through the scheme, the steps to do this are:

1. Check if you can claim.
2. Check which employees you can put on furlough.
3. Steps to take before calculating your claim.
4. Calculate how much you should claim.
5. Claim for your employees’ wages.
6. Report a payment in PAYE Real Time Information.

For periods from 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee. You do not need to have previously claimed for an employee before 2 March 2021 to claim for periods from 1 May 2021.

For periods ending on or before 30 June 2021 you can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month. From 1 July 2021, the level of grant will be reduced and you will be asked to contribute towards the cost of your furloughed employees' wages.

All employers with a UK bank account and UK PAYE schemes can claim the grant. You do not need to have previously claimed for an employee before 2 March 2021.

If you've claimed a grant through the Coronavirus Job Retention Scheme, you should check if you need to report payments on the PAYE Real Time Information system, as this will depend on whether you are using the grant to:

  • pay wages
  • reimburse wages that you’ve already paid

Under both circumstances you must deduct and income tax and employee National Insurance contributions on the full amount that you pay the employee, including any scheme grant and pay it to HMRC.

You must also pay HMRC the employer National Insurance contributions on the full amount that you pay the employee, including any scheme grant.

You must report these payments through a Full Payment Submission to HMRC on or before the pay date.

If you're using the grant to pay wages

Any grant paid to you, is to be used to pay wages to your furloughed employees and should be treated in the same way as any wage payment and is subject to all payroll deductions.

You should pay employees on their contractual payment date so that employees receiving Universal Credit are not affected.

The grant paid is included in pay reported to HMRC through your payroll filing software of a Full Payment Submission, on or before the date that it is paid to your employees.

If you have paid your employees and submitted your Real Time Information submission early
If you have already paid your employees before their contractual payment date, the next time you pay them, make sure it's on their normal contractual payment date.

You should submit the Full Payment Submission on or before the date that you make the payment.

If you're using the grant to reimburse wages already paid

If you have continued to pay your employees during a period of furlough, in advance of receiving any payments under the scheme, you do not need to make another Full Payment Submission for this amount. This is because the furlough grant is reimbursing the wages you have already paid out and already reported.

If you pay the full amount of an employee's normal wage during furlough
If you choose to top up employee wages above the scheme grant, that is your choice and at your own expense.

You must deduct and pay to HMRC income tax and employee National Insurance contributions on the full amount that you pay the employee.

You must also pay to HMRC the employer National Insurance contributions on the full amount that you pay the employee.

If you have not paid your employees' wages yet

If you have not paid any of your employees any wage payments in a tax month
You must submit an Employer Payment Submission stating you have not paid any employees in that tax month. The Employer Payment Submission should be sent no later than 19th of the following tax month where possible. Do not submit a nil Full Payment Submission.

If you only pay your employees part of their normal wage until the grant payment is received
You must deduct and pay to HMRC income tax and employee National Insurance contributions on the full amount that you pay the employee.

You must also pay to HMRC the employer National Insurance contributions on the full amount that you pay the employee.

You must report these payments through a Full Payment Submission to HMRC on or before the pay date.

You must only send a Full Payment Submission reporting the payments you actually made. When you pay the remaining wages to your employees after receiving the grant payment, you must send another Full Payment Submission showing that payment.


First published 1 June 2020