Paying PAYE whilst claiming the Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme has been up and running for over 4 months now and HMRC have started to notice that some employers are not paying their PAYE despite claiming the grant. The scheme was set up to help employers pay not only their staff but also their PAYE liability.

If you are claiming the Coronavirus Job Retention Scheme, then you will be expected to pay your PAYE Liability unless agreements have been made with HMRC. Before August 2020, employers were able to claim 80% of the employers’ NIC and employers’ pension, meaning that employers would only have to pay 20% of the employers cost themselves. Although this has since changed, HMRC do expect employers to pay their PAYE Liability.

If you are not able to pay your PAYE liability then you will need to contact HMRC and you might be able to set up a Time to Pay Arrangement with them if you’re unable to pay this in full. This relates to other taxes as well. This lets you pay what you owe in instalments. Agents are not able to make this arrangement, employers must do this themselves. The number to call is 0300 200 3835. This will take you to the Payment Support Service. If you have received a payment demand letter call the HMRC office that sent you that letter, the number to call will be on the letter.

For further information on this, please visit the HMRC website by clicking here. If you have any further queries, please do not hesitate to contact us on 01273 771122.