There have been many changes to the scheme and version four is live from 1 May 2021. Some of these changes are key to getting the CJRS calculations right so it is vital to understand which rules apply for which periods.
What if you made a mistake?
Given the wide variety of employment contracts and arrangements that employers use, the complexity of the CJRS rules and the pressures that the pandemic has put us all under it is no surprise that many mistakes have been made with furlough claims. But that doesn’t mean you can ignore them: employers have a legal obligation to correct over claims, including notifying HMRC of the error within 90 days (read more), and may well have a financial imperative to make sure they have claimed enough support!
How the CJRS rules have evolved
Topic/rule |
CJRS v1 March to June 2020 |
CJRS v2 July to October 2020 |
CJRS v3 November to April 2021 |
CJRS v3 May to September 2021 |
---|---|---|---|---|
Individual needed to be previously furloughed |
No |
Yes, apart from exceptional circumstances |
No |
No
|
Maximum number of individuals able to claim for |
No maximum |
Cannot exceed the maximum number of employees claimed for under any claim ending by 30 June 2020 unless in very exceptional circumstances |
No maximum |
No Maximum |
Flexible Furlough available |
No |
Yes |
Yes |
Yes |
Employer claim information made public |
No |
No |
From 1 December 2020 onwards apart from exceptional cases |
Yes apart from exceptional cases |
Claims deadline |
31 July 2020 |
30 November 2020 |
14 days after each month end, (unless this falls on a weekend then it is the next working day) |
14 days after each month end, (unless this falls on a weekend then it is the next working day) |
Add additional employees to the claim |
31 July 2020 |
N/A |
28 days after month end (unless this falls on a weekend then it is the next working day) |
28 days after month end (unless this falls on a weekend then it is the next working day) |
Under-claim amendment deadline |
30 November |
30 November |
28 days after month end (unless this falls on a weekend then it is the next working day) |
28 days after month end (unless this falls on a weekend then it is the next working day) |
Over-claim amendment deadline |
20 October 2020 |
90 days after receipt of grant not entitled to |
90 days after receipt of grant not entitled to |
90 days after receipt of grant not entitled to |
Claim while employee is on statutory notice period |
Yes |
Yes |
November 2020 – Yes December 2020 onwards - No |
No |
Claim periods |
Can start and finish in different months |
Claim periods must start and finish in same month |
Claim periods must start and finish in same month |
Claim periods must start and finish in same month |
Length of claim period |
No minimum |
At least 7 days unless it contains first or last day of month |
At least 7 days unless it contains first or last day of month |
At least 7 days unless it contains first or last day of month |
Employee Eligibility |
RTI submission made on or before 19 March 2020 |
RTI submission made on or before 19 March 2020 |
RTI submission made on or before 19 March 2020, or RTI submission made between 20 March 20 and 30 October 2020 |
RTI submission made on or before 19 March 2020, or RTI submission made between 20 March 2020 and 30 October 2020 RTI submission made between 20 March 2020 and 2 March 2021 |
Reference date for employee’s reference salary and usual hours calculations – fixed employees |
Last pay period ending on or before 19 March |
Last pay period ending on or before 19 March |
RTI submission made on or before 19 March – last pay period ending on or before 19 March
RTI submission made between 20 March 20 and 30 October 2020 - last pay period ending on or before 30 October |
RTI submission made on or before 19 March 2020 – last pay period ending on or before 19 March 2020 Or RTI submission made between 20 March 20 and 30 October 2020 - last pay period ending on or before 30 October 2020 Or RTI submission made between 20 March 2020 and 2 March 2021- last pay period ending on or before 2 March 2021. |
Usual hours calculations for variably paid employees |
Higher of:
Average number of hours worked in 2019/20, and
Corresponding calendar period in 2019/20 |
Higher of:
Average number of hours worked in 2019/20, and
Corresponding calendar period in 2019/20 |
RTI submission made on or before 19 March 2020, the higher of: Average number of hours worked in 2019/20, and Corresponding calendar period in 2019/20.
RTI submission made between 20 March 20 and 30 October 2020: Average number of hours worked from 6 April 20 to first day spent on furlough after 1 November 2020 |
RTI submission made on or before 19 March 2020, the higher of: Average number of hours worked in 2019/20, and Corresponding calendar period in 2019/20
RTI submission made between 20 March 20 and 30 October 2020:
Average number of hours worked from 6 April 2020 to first day spent on furlough after 1 November 2020.
RTI submission made between 20 March 2020 and 2 March 2021 Average number of hours worked from 6 April 20 to first day spent on furlough after 1 May 2021 |
Reference pay calculation for variably paid employees |
Higher of:
Average wages earned in 2019/20, and
Wages earned in corresponding calendar period in 2019/20 |
Higher of:
Average wages earned in 2019/20, and
Wages earned in corresponding calendar period in 2019/20 |
RTI submission made on or before 19 March, the higher of:
Average wages earned in 2019/20, and
Wages earned in corresponding calendar period in 2019/20
RTI submission made between 20 March 20 and 30 October 2020:
Average wages payable from 6 April 20 to first day spent on furlough after 1 November |
RTI submission made on or before 19 March 2020, the higher of: Average wages earned in 2019/20, and Wages earned in corresponding calendar period in 2019/20
RTI submission made between 20 March 20 and 30 October 2020: *Average wages payable from 6 April 20 to first day spent on furlough after 1 November *Average wages payable from 6 April 20 to first day spent on furlough after 1 May 21
* Note that where part of the period includes statutory sick pay related leave, family related statutory leave or reduced rate paid leave following such periods, these days should now be left out of the average. |
Reference pay calculation for fixed paid employees |
No adjustment |
No adjustment |
Pay frequency changed between reference period and pay period:
Wages pro-rated to new pay frequency, then multiplied by 80% |
Pay frequency changed between reference period and pay period: Wages pro-rated to new pay frequency, then multiplied by 80%
|
Grant claim |
80% of reference salary (subject to cap of £2,500 Employers national insurance Employer pension contributions |
July 80% of reference salary (subject to cap of £2,500) Employers national insurance Employer pension contributions August 80% of reference salary (subject to cap of £2,500) September 70% of reference salary (subject to cap of £2,187.50) (10% top up by employer) October 60% of reference salary (subject to cap of £1,875) (20% top up by employer) |
80% reference salary |
May and June 2021: 80% reference salary July 2021: 70% of reference salary (subject to cap of £2,187.50) (10% top up by employer) August and September 2021: 60% of reference salary (subject to cap of £1,875) (20% top up by employer) |
For more information on the specific rules, read our CJRS FAQs, get in touch with your usual BDO contact or one of the team listed.
Visit our Workforce resilience hub.
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