Written evidence submitted by Debora Setnik
Limited Company Directors on Annual PAYE Structure NOT Eligible for the Coronavirus Job Retention Scheme (CJRS)
I am a limited company director who have been excluded from the Coronavirus Job Retention Scheme because I am paid via an Annual PAYE structure where RTI submissions are made on or just before the end of each tax year (so on the 5th April 2020 for 2019/2020 tax year).
That meant my RTI submission missed the deliberate and random 19th March 2020 cut-off deadline for payroll submissions set by the Government to be eligible for the CJRS.
Please note that this deadline was announced retroactively and undermined the widely accepted and legal annual PAYE structure that many limited companies have had in place for years.
Those on an Annual PAYE structure should be able to furlough themselves since we were already employed and have a PAYE history.
The Government should instruct HMRC to implement and run an added operations system to check that those claiming have been in a valid business and paying tax in the previous year. There are a number of anti-fraud steps that can be taken by running proper checks.
The Government position that this is not possible due to the 'risk of fraud' is discriminatory by assuming wrongdoing.
A top line process to allow those on Annual PAYE structure to furlough themselves could be:
1. Require a signed statement from the director that this is a valid claim.
2. Confirm that the business is set up with a UTR, and payroll, and pay the claim.
3. Run a post-pandemic audit and pursue any false claims against the earlier signed statement.