Last updated: 17 November 2020
The CJRS allows businesses to furlough and claim grants for an additional group of employees.
The versions ending 31 October 2020 required an employee to have been employed and an RTI submission to have been made on or before 19 March 2020.
The latest versions starting on/after 1 November 2020 can include new employees hired in late spring and summer. Individuals employed at 30 October 2020 provided an RTI submission has been made between 20 March 2020 and 30 October 2020 notifying at least one payment of earnings for that employee can now be eligible for furlough grants.
CJRS V3 has been extended to 31 March for all parts of the UK. From 1 November, the UK Government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month. But, the UK Government has said it will review the policy in January for claims for February and March.
- – only agreements put in place up to and including 13 November 2020 can be relied on for the purposes of a CJRS V3 claim.
- – there is no requirement for either employers or their employees to have used the scheme before to be eligible for periods from 1 November 2020.
- – the limit to additional staff no longer applies. When CJRS V2 was introduced from 1 July 2020, the maximum number of employees which could be included in a claim was limited to the maximum number the employer had ever previously claimed for in any single claim made for periods before 30 June 2020.
The claim is based on 80% of the usual salary/wages in a reference period.
Employees on fixed pay.
The reference period can be:
a) the last pay period ending on or before 19 March 2020 for employees who:
- were on the payroll on 19 March 2020 (ie, there had been a payment of earnings in the tax year 6 April 2019 to 5 April 2020, reported on an RTI submission made on or before 19 March 2020),or
- claimed a valid CJRS in a period ending on or before 31 October 2020.
b) the last pay period ending before 31 October 2020, for all other employees.
Employees on variable pay, usual hours are relevant to determine usual wages.
a) for employees on the payroll on 19 March 2020 (ie, there had been a payment of earnings in the tax year 6 April 2019 to 5 April 2020, reported on an RTI submission made on or before 19 March 2020), or for whom you have made a valid CJRS claim in a period ending any time on or before 31 October 2020,
the usual wages are the higher of:
– wages in the corresponding calendar period (if relevant) in the tax year 2019 to 2020, and
– the average wages payable in the tax year 2019 to 2020.
b) for all other employees, just use average wages payable between 6 April 2020 (or, if later, the date the employment started) and the day before they were furloughed after 31 October 2020.