JSS + furlough: 2019/20 Tax year + 1 Feb -23 Sept

I can't see anything in the guidance that addresses how furlough time / pay is to be treated

Didn't find your answer?

I've been through the guidance and I can't see anything in there that tells you how to deal with either furlough pay or furlough (and esp flexible furlough) periods when doing the new sets of calculations.

May be missing something but has anyone seen:
- is furlough pay included or excluded from the calcs?

- are furlough days or non-worked hours on flexible furlough taken into account for "usual hours" calculations?

Both questions are for either of calculations relating to Tax Year 2019/20 (as furlough started before the end of that period) or 1 Feb 2020 to 23 September 2020.

Looks like it is going to be a total nightmare for any variable pay employees and all the more so if they were on flexible working since July!

Replies (10)

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By the_drookit_dug
31st Oct 2020 10:47

I was wondering that too. The guidance is unclear.

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Replying to the_drookit_dug:
RLI
By lionofludesch
31st Oct 2020 10:53

the_drookit_dug wrote:

I was wondering that too. The guidance is unclear.

Well, I'm amazed at that.

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By jonibarnes
31st Oct 2020 10:49

I have the exact same query - my feeling all week pre guidance release was to ignore, now I am not so sure.

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By jonibarnes
31st Oct 2020 12:10

It would be nice to see in the guidance but the more I think about it surely furlough doesn’t come into it. It must just be wages paid in the period divide by days employed in the period between 1/2 to 23/9 multiply by days in the pay period.

I wouldn’t put it past HMRC complicating it but surely not.

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By fawltybasil2575
31st Oct 2020 23:39

@ henryfairpo (OP).

If I understand your question correctly, the key to replying to it is the basic principle of the JSS, namely (i) calculating the “unworked hours” and then (ii) applying that “unworked hours” figure to the reference salary. The GOV.UK guidance is here:-

https://www.gov.uk/guidance/calculate-how-much-you-can-claim-through-the...

The paragraph headed “How to work out the reference salary” should help, and then (if the employees are on variable pay, as most employees from my experience are) the paragraph headed “Work out the reference salary for employees with variable pay”.

Any previous furlough pay under CJRS will be automatically included in the wages/salary.

Basil.
EDIT. I apologise for my closing paragraph which, as noted by the two eminent members below, is incorrect. I asked Bojo and Rishi to save my blushes by postponing JSS at the eleventh hour, to distract everyone, and they duly obliged :)

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Replying to fawltybasil2575:
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By jonibarnes
31st Oct 2020 15:46

I have read that paragraph but cannot see anywhere that it says to include furlough pay when calculating reference salary.

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Replying to fawltybasil2575:
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By henryfairpo
31st Oct 2020 17:13

Hi Basil

I've done a search and the word "furlough" doesn't appear anywhere on that page and there is only one reference to CJRS (but only in relation to a change in contract that isn't related to CJRS) which is the challenge that I've been trying to find the answer to.

So while you're correct in saying it should help it doesn't sadly!

The pay feels straight forward. The bit that is worrying me is "usual hours" esp for the period 1 Feb to 23 Sept and the impact of flexible furlough - is it just the hours actually worked or the "usual hours" for that period?

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By jonibarnes
31st Oct 2020 18:09

This is the problem with releasing the guidance on a Friday evening when payrolls need to be done early next week. Joke.

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By Paul Crowley
31st Oct 2020 18:46

And we all know the guidance will be amended ( insert stupid figure ) times and errors and misunderstanding measured by the hindsight ruler and the not abusive calculator

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By jonibarnes
31st Oct 2020 20:52

We can put this one on the back burner for a while

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