CJRS guidance from 1 May 2021: Get the details right
Kate Upcraft digs into details of the CJRS scheme extension from 1 May 2021 to 30 September 2021 and uncovers a new round of calculation challenges.
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Thank you Kate. I feel my blood pressure rising, and can only hope I won't have many situations where I need your excellent advice.
Excellent summary as always, Kate.
Just a thought (from the old cynic in the corner) ... by the time that most of us have fully understood all the rules (at each stage of the evolution of CJRS), it will hopefully have disappeared - and the only purpose of all that hard-won knowledge will be to review/defend earlier claims!
I have an employee who joined on 26 Oct 2020 but missed the RTI deadline. Then as the employer is a pub they were locked down from 5th Nov to 2 Dec, then locked down again from 26 Dec. How do I work out the furlough for this employee?
Is it just a case of adding up all the earnings then dividing that by actual days/weeks worked
1. Do you really mean "How do I work out the furlough for this employee?"
If so, the answer is that you can pay whatever you like to a furloughed employee - subject only to the usual (non-Covid related) employment laws and that person's contract of employment ... so long as it includes any money received by the employer under a CJRS claim related to the employment of that employee for that period.
2. I presume you meant how do you calculate any CJRS claim related to any furloughing of this employee?
If so, all the guidance is available on GOV.UK - starting at https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus...
3. Without repeating or trying to precis all the guidance, the first step is to check on eligibility (of the employer and then of the specific employee).
Based on what you say ("employee who joined on 26 Oct 2020 but missed the RTI deadline"), I presume you mean that the employee is NOT eligible - as Employer "must have made a RTI submission to HMRC between 20 Mar 2020 and 30 Oct 2020, notifying a payment of earnings for that employee."
If my presumption at point 3 is correct, then you can loop back to point 1.
Hi Hugo
2. Yes I did mean what CJRS claim relating to furlough for this employee but the guidance does not appear on gov.uk website yet
3. The employee was not eligible for furlough pay as was not on an RTI submission prior to 30 October but the new rules states that she will be eligible from 1 May.
I think HMRC's example 2.3 may be wrong. The days multiple for the period 6th May to 19th May should be 14 not 13.