Many small business owners and advisors are facing changes to their payroll as a result of COVID-19. Many are applying for government subsidies and relief packages, calculating new sick pay and leave entitlements, or standing down large numbers of staff, staying up-to-date on the latest changes can be overwhelming.

Xero payroll teams have simplified and automated a lot of the new payroll changes, so that users can spend less time worrying about compliance and more time focused on your business. They’re also working closely with government agencies to understand what changes are coming up and the impact they’ll have on SMES.

All Xero Payroll customers in the UK can now process furlough leave for eligible current or reinstated employees. The solution lets you easily split out the wage costs of furloughed workers in preparation for the grant claim, which is available for the period 1 March to the end of June and will be processed by HMRC via your PAYE online account.

‘COVID-19 self-isolation‘ has been added as a sick leave option for employees who are required to self-isolate, so they can earn sick pay from day one instead of the usual four consecutive days. HMRC are currently working on a process to help small and medium-sized businesses reclaim two weeks of self-isolation sick pay – once this is ready, Xero will help you capture these records and support the reclaim process.


For the latest updates, please visit Xero’s Behind Small Businesses.