Share this content

Reference pay for March

March 2020 reference pay

Didn't find your answer?

Hello, I've seen it mentioned by others, but has anyone seen an update re what we will use as the reference pay for variably paid employees who didn't receive a full month pay in March 2020 due to being furloughed? 

I know it's a little way off for most, but we are running the Feb and March payrolls in advance (long story but involves Employment allowance and CJRS ERS NIC rebates!) 

Thanks in advance.

Replies (9)

Please login or register to join the discussion.

avatar
By JHC
25th Jan 2021 16:17

Ive just checked and these employees were furloughed on 19 Match, so for now I'm going to divide their March pay by 18 x 31 for March reference pay. They were fully furloughed in April, so not sure what the situation will be then other than using April 19 gross pay, if available, or the average if 2019-20.

Thanks (0)
avatar
By NYB
25th Jan 2021 16:24

The answer to post is "No". Not sure the dividing and multiplying by 31 days works totally for variable hours. Therevare lots of ways it could be worked but as yet we have no idea of the "correct" way

Thanks (1)
Replying to NYB:
avatar
By JHC
25th Jan 2021 22:09

Thanks, will look out for an update. I've used that method for now and compared to 2019-20 daily average, then used the higher.

Thanks (0)
By Kate Upcraft
28th Jan 2021 09:54

Yes it's in the guidance and the new direction - you use higher of 19/20 average or March 2019

Thanks (1)
Replying to bassett1:
avatar
By JHC
28th Jan 2021 10:16

bassett1 wrote:

Yes it's in the guidance and the new direction - you use higher of 19/20 average or March 2019


Great, thank you, I've missed the new direction. So assume then that April furlough will use April 2019 gross pay (if applicable)
Thanks (0)
Replying to JHC:
avatar
By NYB
28th Jan 2021 10:53

Only came out yesterday via The Treasury as opposed to HMRC which I presume will follow. And thank God that its simple. Was dreading some convoluted equations again.

Thanks (1)
Replying to bassett1:
avatar
By alejandra
28th Jan 2021 11:14

Excellent, I was wondering what was going to happen.

Thanks (0)
By Kate Upcraft
28th Jan 2021 11:40

Yes in April the lookback will be to April 2019 v 19/20 for variable pay. The Direction always comes from HMT as it's their direction to HMRC under powers in the Coronavirus Act

Thanks (0)
Replying to bassett1:
avatar
By JHC
28th Jan 2021 12:33

bassett1 wrote:

Yes in April the lookback will be to April 2019 v 19/20 for variable pay. The Direction always comes from HMT as it's their direction to HMRC under powers in the Coronavirus Act

I wonder if April 20 pay is higher (maybe they weren't furloughed until later in the year) if we can use that?
Thanks (0)
Share this content