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Covid Job Retention Scheme (CJRS) – For employees –

Recap on our blog 6th November

The CJRS will now run to 31st March 2021.

·       The Government will meet 80% of the furloughed hours.

·       Employees that were employed and on the payroll on 23rd September 2020, who were made redundant or stopped working afterwards, can be re-employed and claimed for. The employer must have made an RTI submission to HMRC from 20th March 2020 to 23rd September 2020, notifying a payment of earnings for those employees.

Update:

Pre-November CJRS claims deadline

  • All CJRS furlough claims for the period 1st July 2020 to 31st October 2020 must be submitted no later than 30th November 2020.

November onwards CJRS claims deadline

  • CJRS claims must be submitted before midnight on 14th of the month following the month you are claiming for (e.g. November claim – 14th December 2020).
  • If the 14th falls on a weekend then it will be the end of the next working day.
  • A reasonable excuse maybe accepted if the deadline is missed.
  • If a claim has been understated you will have 28 days from the end of that month to correct it.

Company directors

  • Officeholders and salaried company directors are still eligible to be furloughed.
  • Directors, whilst furloughed, should only carry out statutory duties which they are legally obliged to do. For example, the daily upkeep of the business, including legal filings, record keeping, payroll, preparing annual accounts, and updating general records.

CJRS – Employees not on the payroll on 19th March 2020

Furloughed employees on a fixed wage

  • The pay reference period as regards CJRS claims is the last pay period ending on or before 30th October 2020.
  • Example 3.3 on the link below shows how to calculate the CJRS claim.

https://www.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your-employees-wages/examples-of-how-to-work-out-80-of-your-employees-wages-national-insurance-contributions-and-pension-contributions

Furloughed employees on variable pay/hours

  • The relevant pay for CJRS purposes is their average wage between 6th April 2020 (or if later the date the employment started) and the day before they are furloughed on or after 1st November 2020. 
  • Example 3.9 on the link below shows how to calculate the average earnings.

https://www.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your-employees-wages/examples-of-how-to-work-out-80-of-your-employees-wages-national-insurance-contributions-and-pension-contributions

  • When working out the CJRS claim, where an employee works variable hours you will need to calculate the ‘average’ hours per day and then apply that to pay reference period (in part or in full) for which the CJRS claim is for.
  • Example 2.9 on the link below shows how to calculate the ‘average’ hours worked per day and how to apply it to the relevant furlough period.

https://www.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your-employees-wages/examples-of-how-to-work-out-80-of-your-employees-wages-national-insurance-contributions-and-pension-contributions

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