CJRS 2.0 support for UK Accounting firms – Comprehensive Furlough Claims Processing
Jul 23, 2020
The COVID-19 pandemic has created a truly unprecedented situation that affects us all, while accountants are the ones trying their best to save businesses and restore economic normalcy.
Under the Coronavirus Job Retention Scheme (CJRS), UK accounting firms have been swamped with the claims work being carried out for clients in respect of furlough pay –
thousands of claim applications means they face extreme pressure.
One of the issues, when looking at the job retention scheme itself, is about getting the payrolls and the submissions process in time as practices have encountered a high demand from clients to prepare payroll documents within the deadlines.
There is no doubt that CJRS has provided a lifeline for many businesses but it’s clear flexi furloughing has made it even more complex.
Many businesses across the board are now applying for the coronavirus loan through banks, and the banks are asking for documents such as cash flow projections, management accounts, and end accounts. Accounting firms have to accelerate their process and service delivery time for getting that done for their business clients.
On 1st July, the second version of Coronavirus Job Retention Scheme was launched which allows employers for more flexible options than the version 1. Now businesses have until 31st July to claim CJRS V1 grants while the final date for submitting claims under CJRS phase 2 is expected to be 30 November.
While businesses with 100 or more staff can upload their spreadsheet to the portal, small scale enterprises are required to manually enter the information of furloughed individuals – a burden for accountants that must process thousands of claims.
Adapting and Adopting to Outsourced Payroll Processing During the Pandemic and Beyond
As accountants are nearly burning out from the indundated work and are looking to speed up service delivery to clients, it is a good time to consider outsourced payroll as an option to navigate the difficult times.
On top of economic challenges due to Covid-19, CJRS has forced accounting firms into doing some really heavy lifting which gives SandMartin – accounts, taxation and payroll outsourcing services partner of more than 60 UK accounting practices – an opportunity to help create a “new normal” for firms seeking ways to save costs, improve processes and provide better client value proposition.
To provide additional support to our UK Accounting firms clients who are overwhelmed with the work, Our WFH and non-WFH teams have been working effortlessly in furlough claims processing, Year-end finalization, Payroll and VAT work.
Our existing clients have been able to deliver more immediate and progressive value proposition to their clients. Once economic stability is restored, accountants that have been helpful during this period will undoubtedly receive more business.
SandMartin’s Expertise in Furlough Claims Processing Work
Our robust team of payroll accountants have been handling end to end furlough pay and grant claim process with a quick turnaround time.
To support our clients in overwhelming Furlough Claims Process, we are performing the following tasks and claiming the furlough payment on behalf of our other clients. Our services for furlough claims processing includes:
· Calculating the furlough pay for employees with fixed and variable pay based on payment frequency and in accordance with the guidelines laid down by HMRC. If it’s a standard employee (fixed pay employee) then 80% of its normal salary up to cap amount of £2500.
· In case of an employee with variable pay we calculate and pay 80% of the average income of that employee for the year 2019-20 or 80% of the same month salary from the previous year up to a cap amount of £2500.
· Once the claim sheet has been prepared we send this to the client for approval.
· Processing the furlough claim to recover the payment processed , employer NI and pension contribution made by employer using the HMRC government gateway once the approval has been received from the client.
· Providing the claim reference number to the client once the claim has been made
Takeaway for UK Accounting Firms
Despite the increasing pressure put on accountants, it is a great time for accountants to shine and show their clients what value they can provide as clients become heavily reliant on professional advisors. We have observed that numerous accounting firms in the UK have portrayed the intention of outsourcing so that they could invest more energy with customers for advisory and counseling instead of diving into calculating.
During these unprecedented times, outsourcing can be a practical way to easily deal with the influx of current work and turn your focus on a better client value proposition.
Contact our UK payroll outsourcing experts at firstname.lastname@example.org and get an intro call scheduled.