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Furlough again - sorry!

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Before I break the bad news to a couple of my employers, please can I just check that my understanding ties in with other peoples.

New employee joined during October; employer's pay period is calendar months. Therefore where "the employee’s reference period will be their last pay period ending on or before 30 October 2020" this will be the pay period that ended 30 September? Meaning October joiners do not qualify where the October pay period ended on 31 October? (this is in respect of fixed salary employees)

Thanks for any views.

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By the_drookit_dug
12th Nov 2020 10:51

If they were on an RTI submitted by 30 October 2020 then they're eligible.

The point you've picked up on is how you calculate reference salary - essentially, it says use September salary. As they weren't employed in September, you've technically, I suppose, got someone whose ref salary should be calculated using the rules for employees who have not worked a full pay period. It's madness.

Thanks (2)
Replying to the_drookit_dug:
By Paul Crowley
12th Nov 2020 11:57

I disagree
HMRC originally said pay period up to 30 Oct filed by 30 Oct
No idea if really an error on the pay period, but reasonable for monthly but not calendar monthly to be Oct
31 Oct could be manipulated on the Saturday. Hours of time to submit or amend

BUT I have understood fixed calendar monthly as February or September

Only way is to test on HMRC calculator
I have not bothered yet as does not impact on any client

Thanks (2)
By HClarke
12th Nov 2020 13:48

Thank you both.
Having put it on HMRC's calculator, it appears that uses October as the pay reference, but totalled up to the full monthly wage.

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By armstrongbell
12th Nov 2020 14:05

I believe (but could be wrong with so much changing) that

1) to be eligible you would have submitted an RTI on or before 30 October.

2) that RTI would therefore be the reference pay period for the new employee

3) the HMRC example calculations calculate a daily rate of pay from that period

4) they then use that daily rate and multiply it by the number of days furlough to arrive at the furlough claim.

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Replying to armstrongbell:
By the_drookit_dug
12th Nov 2020 15:36

The confusion is creeping in because the pay period for the October calendar month ends after 30th October 2020 i.e. on 31st October. So the payment in the last pay period ending on or before 30th October is the September payment.

It's a nonsense. Happy to be told I'm wrong, and that October should be used.

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By SteveHa
12th Nov 2020 14:25

Just goes to show it's as ill-conceived as previous versions of CJRS. Do they not listen to just about everyone else.

Thank heavens that in my new job I don't have to worry about payroll and JRS/CJRS etc.

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