While we remind you that all Coronavirus Job Retention Scheme (CJRS) claims for periods in April must be made by Friday 14 May, we would also like to inform you that new entrants to the scheme qualify from 1 May for furlough again. Details are outlined below, but please do get in touch with your usual BM Connect adviser if you require any assistance.
CJRS eligibility from May
If you have employees who have previously been ineligible for the CJRS, as they were not on their payroll on 30 October 2020, they may be eligible for periods from 1 May 2021 onwards.
From May, you will be able to claim for eligible employees who were on their PAYE payroll on 2 March 2021. This means you must have made a PAYE Real Time Information (RTI) submission between 20 March 2020 and 2 March 2021, notifying HMRC of earnings for that employee.
You and your employees do not need to have benefitted from the scheme before to make a claim, as long as you meet the eligibility criteria.
Changes to CJRS claims for variable pay from May
For periods from 1 May, when calculating the average wages for employees who are not on a fixed salary, you should no longer include periods of:
· Statutory Sick Pay related leave
· family related statutory leave
· reduced rate paid leave following a period of Statutory Sick Pay or family related leave.
However, if an employee was on one of these types of leave for the entire period used to calculate their average wages, then you should continue to include the days and wages related to that leave.
For more information on variable pay calculations, go to GOV.UK.
Frequently asked questions about the CJRS
Can I still use the CJRS if I am starting to re-open my business?
Yes, you can continue to use the CJRS if your business is affected by coronavirus. You don’t need to place all your employees on furlough. You can also use the CJRS flexibly to bring your employees back to work for some of their usual hours. You can claim for a portion of the usual wage costs for the hours spent on furlough.
Can a CJRS grant be used to pay for holiday leave?
If you have furloughed employees because of the effects of coronavirus on your business, you can claim under the CJRS for periods of paid leave your employees take while on furlough, including for bank holidays. You should not place employees on furlough just because you are going to be on leave.
If an employee is furloughed for only some of their hours, employers can count time taken as holiday as furloughed hours, rather than working hours. This means employers can currently claim for 80% of their employees’ usual wages when they’re on leave.
In line with the Working Time Regulations, if a furloughed employee takes holiday, employers should make sure you are calculating the correct holiday pay, and not simply continuing to pay the 80% you receive through the CJRS. You may need to top up your employees’ pay to 100% of their normal hourly rate or salary. You can find more information on GOV.UK.
If you have any concerns or queries relating to any of the enclosed information, please contact Mariske Byrnes or your usual BM Connect adviser.
