Contractors: How do you apply for the Coronavirus job retention scheme?

Our easy to read guide breaks down exactly how to apply for the job retention scheme. As a company, we pride ourselves in supporting clients any way we can. Some companies may be charging extra in order to help contractors with any furlough support. At Integro Accounting if you need help with this process, we are on hand to help mange this on your behalf, at no extra cost.

If you feel you’re not getting the support you need, speak to one of our accountants today on 0207 0962659 or complete our call back request form.

How do I apply for the job retention scheme?

The application for the job retention scheme can only be completed online. Simply click on the following link to get started: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

What documentation will I need in order to apply for the scheme?

Before starting your claim, you will need to ensure you have your Government Gateway ID and Password.

If you do not have a Government Gateway ID or password, click the following link to apply now: https://www.gov.uk/log-in-register-hmrc-online-services/register

The HMRC gateway is an online portal that allows you to register for government services i.e. child tax credits, self-assessment tax return application etc. As a limited company director, you may not have one. Using specialist contractor accountants, like Integro Accounting, means they would have kindly registered you for payroll and other services you require as your accountancy ‘agent’. Again, they will not have your gateway ID as they will have their own individual logins. Your activation code will take between 7-10 working days to arrive in the post.

Once received, click on the ‘Claims’ button in order to get the process started.

A list of all the documentation you will need throughout the application can be found at the top of the HMRC page in the above link. This is standard information, such as: National Insurance number, banking details etc.

How long does the process take?

Naturally, the amount of people that need to be furloughed can depend on how long the process takes. However, what we can reassure you is that it is very straightforward and based on one limited company director can take just a few minutes.

How long will it take for me to know my application has been successful?

Prior to submitting your application to HMRC the employer must state in writing that their employee has indeed been furloughed. This applies to limited company directors also. There are various templates available but using an impartial party like ACAS would be beneficial. You can find the ACAS template here: https://www.acas.org.uk/furlough-letter-template

Following the submission, you get an immediate receipt with payments expected to come through with 5-6 working days.

How is the money through furlough calculated as a freelancer/contractor?

Once all details have been submitted, HMRC have confirmed that all money will be paid into the nominated bank account within 6 working days of your claim being submitted.

The 80% payment is based on your gross payment for the last paid period prior to the 19^th March 2020. For example:

The above calculation covers the entire calendar month. Any amendments will need to be pro-rated and discussed with your accountant.

We hope you have found the above information useful. For all other information surrounding Covid-19 and the government schemes, please click on the links below:

• Covid-19 Business and Tax Updates
• How does the Coronavirus Job Retention Scheme help Contractors?
• Tax avoidance schemes target NHS locums

Our team at Integro Accounting are here to help. Speak to an accountant today, or visit our Fixed Fee Services page to see what we can do for you.