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Furlough - employee left in 2019 returned 2020

Employee left in July 2019, returned July 2020 - what base salary should be used

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An employee left employment with a client in July 2019 and then returned in July 2020.

On the face of it I would think that the furlough claim should be based on the salary in the current tax year. But looking at the HMRC calcualtor it says:

Was this employee on your payroll on or before 19 March 2020?

Enter yes if you made a payment of earnings to them in the tax year 2019/2020, which was reported to HMRC on a Real Time Information (RTI) Full Payment Submission (FPS) on or before 19 March 2020.

RTI submissions were made in the 19/20 tax year including them, but it would seem bizarre that this is the basis for any furlough claim given they left employment, were issued a P45 and were gone for a year.

In this case it only makes about £10 difference as they are part time - but it confused me.

Apologies if this has been covered before - I did try and search, but probably badly.

Replies (3)

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By the_drookit_dug
13th Nov 2020 10:05

Doesn't cover leavers though. The precise wording of the original treasury direction confirmed this.

Just treat them as any other 2020-21 new start.

Thanks (1)
By kathyk0410
13th Nov 2020 10:28

Agreed - We had a similar case and I treated them as a new starter so used 20/21 which was definitely in his favour. However, it did highlight the unfairness of having to use 19/20 for the staff who worked with him then and now.

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By leicsred
13th Nov 2020 11:41

Perfect, thank you.

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