Owner Kate Upcraft Consultancy Ltd
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CJRS interview: The Chancellor Rishi Sunak appears on the BBC's Marr Show
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CJRS: Your questions answered

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Kate Upcraft answers questions about the calculations needed for CJRS claims and other issues raised by AccountingWEB members. This article was updated on 17 November following release of the legislation.

13th Nov 2020
Owner Kate Upcraft Consultancy Ltd
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Accountants and payroll professionals are frustrated by government guidance that appears late, and then is incomplete or confusing. We hear your pain at AccountingWEB, and are striving to find the answers you need.

1. The definition of “reference pay” for a monthly paid employee on a fixed salary should be their pay for October 2020 – is that correct?      

No. The reference pay for a fixed-pay employee, who was not eligible for the earlier CJRS schemes, is the pay in the last pay period that ended on or before 30 October 2020. For monthly paid employees this will normally be the September pay period if the October pay period ends on 31 October. 

If the employee was included in a claim for CJRS.1 or CJRS.2, his reference pay is his last pay period that ended on or before 19 March 2020, ie the same reference pay as used in earlier CJRS claims. If that employee was reported as leaving the employment before 23 September 2020, and rejoined by 30 October 2020, he will be treated as a new joiner.

2. HClarke asks: A new employee joined in October and was paid on 30 October, but the pay period ends on 31 October, what is their reference pay? 

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Replies (5)

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By Wanderer
13th Nov 2020 17:28

"....... although of course, we haven’t seen the legislation at this stage."
I've posted a link to the legislation here:-
https://www.accountingweb.co.uk/any-answers/cjrs-01112020-on-heres-the-a...

Thanks (2)
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By NYB
14th Nov 2020 10:30

This HP is virtually impossible at the best of times. 50 employees paid monthly based on accrued hours (variable). Its nigh on impossible without taking hours of time to start splitting that into weeks. And with a variety of employment situations since July 4 even more impossible.

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By pmt1pff
16th Nov 2020 10:21

Presmuably if someone is furloughed while on maternity leave then they would receive an increase in pay vs SMP? (Assuming they are at the point where all they are receiving is SMP, or less.)

this would be because SMP is ignored when calculating reference pay (unless this has changed also)?

Has anyone seen this in practice?

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By S.Andonova
16th Nov 2020 10:28

Thank you!

And what about employees whit no NINo, I've heard from colleagues that HMRC could add them to your claim, but still depends on the adviser on the other end.

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By Ian McTernan CTA
16th Nov 2020 12:02

I wonder when they will cover cases where people were self isolating (with proof) had just started at the restaurant in October and submission was delayed until 4 November as the payroll bureau didn't have all the information until then...

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