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Variable hours and CJRS

Hours worked or hours paid?

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All our staff are paid monthly at the end of each month,  however our hourly staff are paid for hours worked up to 18th of the month.

I'd originally planned to simply undertake usual hours calculations based on hours shown on payslips, however just wondering if I need to split each month so that I'm capturing actual hours worked rather than hours paid?

What are others doing, and are you doing likewise in calculating reference salary?

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By Paul Crowley
26th Jul 2020 18:10

Calendar months are the rules for all. Parts of months also acceptable.
Whatever claims are made must take account of the actual hours worked in the month.

https://www.accountingweb.co.uk/any-answers/flexible-furlough-variable-h...

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Replying to Paul Crowley:
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By Silvery Waves
26th Jul 2020 19:15

Thank you. What about the same period last year? Can I just look at monthly pay for July last year, which was for hours from 19/6/19 to 18/7/19, or do I have to look at hours worked to 1st - 18th (paid in July) and add 19th - 31st (paid in August)? What a faft if the latter!

Would I then have to also split the months to calculate reference pay?

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By the_drookit_dug
26th Jul 2020 22:57

This from HMRC's guidance may be of help:

"Employers should identify the hours the employee worked using pay records, time sheets and other records which show time worked. If these aren’t available then use other records, such as rotas or work diaries. If these records are not available, employers may use the pay rate to work back from gross pay."

If no records are available, then working back from gross pay would only give you the hours paid - you wouldn't know if the hours paid in July 2019 were worked in June 2019 or July 2019. Sure, you could pro-rata, but is it going to be any more accurate than just working with the actual hours paid? Which might suggest it's acceptable to keep it simple and use the hours paid in the same period last year for working out usual hours.

Maybe bounce it off HMRC webchat first...

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By kathyk0410
27th Jul 2020 14:34

Yes the CJRS doesn't really take into account mixed payrolls - we also have the issue of "hours up to" although ours is later in the month. The real issue is when they come off furlough as they will have furlough up to a date then hours up to another date and then a black hole to the end of the month with no pay. So depending on how the first furlough calculation was done and whether they were paid for the end of the previous month it may be just a catch up. Though if you were like us and the first payment was a blur you may need to revisit.

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