CJRS changes - the joys to come

Rishi Sunak has announced the forthcoming changes to the scheme

Didn't find your answer?

So, now we have some more detail.

Financial support to be withdrawn gradually - with employer NI and pension being chopped from August, and the gross pay claim reduced to 70% in September and 60% in October.

More flexibility for staff from July - employers can bring people back X days a week and claim furlough for the rest of the week. Interesting to see how we are going to square those calculations with furlough being worked out on calendar days!

Obviously a lot of detail to come - but some of these calculations are going to be horrendous especially where salary periods don't match up nicely with the calendar month...

Replies (25)

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By Southwestbeancounter
29th May 2020 17:56

Thanks for that Pandora - I popped out for provisions for 20 minutes and by the time I came back both CJRS and SEISS had been revamped!

I was hoping for a quiet weekend too but the emails have already started! So 'thank you' Mr Sunak!!

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By acceje
29th May 2020 17:58

gov.uk states that further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June 2020.

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Replying to acceje:
ALISK
By atleastisoundknowledgable...
29th May 2020 20:06

acceje wrote:

gov.uk states that further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June 2020.

So 2 days after the deadline to furlough someone then.

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Replying to atleastisoundknowledgable...:
RLI
By lionofludesch
29th May 2020 20:18

atleastisoundknowledgable... wrote:

acceje wrote:

gov.uk states that further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June 2020.

So 2 days after the deadline to furlough someone then.

I'm either going to furlough an employee or I'm not. How to calculate pay is a side issue at most.

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Replying to lionofludesch:
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By Cheshire
29th May 2020 22:03

Agreed, but now we have 2 weeks of daft question time again. Probably get the update after 5pm on 12th as well.

Although I've not read it, too busy rebelling by sitting in the sun for a change. Mind, I was bored after a couple of hours!!

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By tom123
29th May 2020 18:01

I am glad the fall off doesn't start in August too much.
At least we have some experience in the type of calculations now!

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By jonibarnes
29th May 2020 18:12

Am I correct in thinking the flexible furlough is a completely new scheme and therefore employers don’t have to of furloughed employees by the 10 June to be eligible?

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Replying to jonibarnes:
RLI
By lionofludesch
29th May 2020 18:18

jonibarnes wrote:
... employers don’t have to of furloughed employees

There's a typo in here somewhere - what are you trying to say ?

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Replying to lionofludesch:
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By jonibarnes
29th May 2020 18:23

Do we have a cut off date of 10 June. For instance on 1 July could I decide to furlough an employee for 2 days out of 5 on the flexible scheme? Is the 10 June just a cut off to receive 80% in July.

Hell I don’t even understand what I’m asking myself ! It’s been a long week! I’ll digest it all properly over the weekend.

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Replying to jonibarnes:
ALISK
By atleastisoundknowledgable...
29th May 2020 20:10

The way I read it was:
Furlough scheme #1 ends 30/6.
Furlough scheme #2 starts 01/7.
You have to be on #1 to be on #2.
Minimum furlough period is 3 weeks.
Ergo, to be on #2, you have to be furloughed on #1 by 10/6

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RLI
By lionofludesch
29th May 2020 18:21

So if the gross pay claim is being cut, does the employee still get 80% or does he get a pay cut ?

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Replying to lionofludesch:
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By PandoraSleeps
29th May 2020 18:27

I think he said the employees still get 80% so it doesn’t affect them, it’s a contribution to their 80% from the employer.

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RLI
By lionofludesch
29th May 2020 18:35

Apparently, it's National Biscuit Day today.

I need a biscuit after reading that - maybe more than one.

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Replying to lionofludesch:
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By NYB
29th May 2020 19:09

Ye Gods. More than a biscuit

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Replying to lionofludesch:
paddle steamer
By DJKL
29th May 2020 19:28

But what biscuit; milk chocolate digestive, dark chocolate digestive, a Tunnock's caramel wafer, custard cream, these daftly priced Border Biscuits my spouse buys, Jammy Dodger, Hob [***], KitKat.

Up here it is no evening meal day, I have come in from working on my cheap garden room (to be made from left over timber , buy nothing(though I have purchased the electrics)) I find nobody wants to cook and it is a DIY evening in that we each fend for ourselves- perfect opportunity for a generally frowned upon bacon and egg Bagel or if that is too much effort maybe have one of each type of biscuit we currently have in the house.

Edit- they censored HobNob, that is what comes of incorrectly using a space.

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Replying to DJKL:
RLI
By lionofludesch
29th May 2020 19:55

DJKL wrote:

But what biscuit; milk chocolate digestive, dark chocolate digestive, a Tunnock's caramel wafer, custard cream, these daftly priced Border Biscuits my spouse buys, Jammy Dodger, Hob [***], KitKat.

Aye, they're all grand.

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By jonibarnes
01st Jun 2020 11:26

let me try again with my friday evening question, I the point i was trying to make was (here goes) ....

To claim on CJRSv2 do i just have to of put in a furlough claim on CJRSv1 ?

Imagine I am a tradesman- I put in a furlough claim in for april - may. My employees return to work full time for June - July. perhaps the virus returns in august so i see a reduction in trade. Can I put employees on part time and furlough them for the rest of their contract?

Or do i miss out because I didnt have them on furlough upto 30 June ?

The guidance to me seems to in places read like the employees have to be on furlough at 30/6, and in other parts suggest they just have to of been furloughed at some point on CJRSv1.

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Replying to jonibarnes:
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By fawltybasil2575
01st Jun 2020 12:13

@ jonibarnes.

If an employee was taken off furlough at any time prior to 30 June 2020 then they will be EQUALLY as eligible for furlough (under CJRSv2) as an employee who was on furlough at 30 June 2020.

Basil.

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Replying to fawltybasil2575:
Stepurhan
By stepurhan
01st Jun 2020 13:15

fawltybasil2575 wrote:

@ jonibarnes.

If an employee was taken off furlough at any time prior to 30 June 2020 then they will be EQUALLY as eligible for furlough (under CJRSv2) as an employee who was on furlough at 30 June 2020.

Basil.

Can you clarify your reasoning for this please basil?

I'm going back to reread it now, but my first reading interpreted it as new furlough periods (even for previously furloughed employees) could not start after 30 June 2020. It would be a great relief to find out that is not the case.

As others have said, releasing the details 2 days after the 10 June deadline for qualifying for furlough is a naff (wanted to use ruder words but knew the forum would reject them) move by the government. If said details confirm my interpretation and not yours a lot of people are going to be very unhappy.

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Replying to jonibarnes:
Kitten
By Hazel Accounts
01st Jun 2020 12:49

Yes, as Basil says above.

So 10th June is important as it's the latest date you can add an additional employee to furlough scheme CJRSv1 to give them 3 weeks before that scheme ends on 30 June.

If they weren't on CJRSv1 then you can't claim for them on CJRSv2.

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Replying to Hazel Accounts:
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By jonibarnes
01st Jun 2020 13:28

This would certainly be a great relief to a lot of people - I interpret it that way re read the guidance then interpret it the other!

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By fawltybasil2575
01st Jun 2020 14:16

@ stepurhan (your 13.15 post today).

This is a link to my thread recently, which includes the GOV.UK guidance:-

https://www.accountingweb.co.uk/any-answers/furlough-and-seiss-changes-a...

If you scroll down to "Important dates", I feel this section explains matters relatively clearly. I do find that some guidance (from GOV.UK and elsewhere) does not always adequately clarify whether it is referring to the employer or to the employee: in that regard, possibly the reference, in that "Important dates" section, to "new entrants" has been interpreted by you as referring to the employer, whereas in fact it refers to the employee. In that regard, I note your understanding that:-

"new furlough periods (even for previously furloughed employees) could not start after 30 June 2020".

I am only guessing, but your above words, if I correctly interpret them, might possibly help to explain what I respectfully consider is your incorrect interpretation.

Feel free to post again if I have not clarified the matter adequately.

Basil.

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Replying to fawltybasil2575:
Stepurhan
By stepurhan
01st Jun 2020 14:24

Thank you kindly basil.

It does indeed appear to be a misinterpretation on my part. I read the reference to new entrants in the important dates section as meaning a new furlough period (since an employee would have left the scheme when the first furlough ceased). I see that is actually clarified further down the page and agree that your interpretation is correct.

Thank you for taking the time to respond. It is very much appreciated and reminds my why I stick with this forum, even though it is not all it once was.

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Replying to stepurhan:
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By fawltybasil2575
01st Jun 2020 16:50

@ stepurhan.

Thank you for the kind words - more than happy to help a man who, for many years, was a prodigious and highly knowledgeable contributor to AWEB, whilst I fully respect his more recently reducing his site visits.

Basil.

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Replying to fawltybasil2575:
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By jonibarnes
01st Jun 2020 14:48

Thanks Basil much appreciated that does help clarify

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