Date
05 Feb 2021Category
Tax, Employer SolutionsThe Government published a further Treasury Directive on 25 January 2021 to update the Job Retention Scheme (JRS) guidance to cover the period 1 February 2021 to 30 April 2021.
There were a few key points which we detail below:
Variably paid employees – Lookback periods
It is important to note that this applies to those employees who were eligible for the initial phase of the scheme and were on the payroll on or before 19 March 2020.
The JRS guidance advised us to use reference pay and usual hours based on the higher of the following:
The 'corresponding period form last year' made sense when we were still in 2020, but as the scheme has been extended through to 2021, this has now been clarified and updated.
For claims made for January 2021 and February 2021, the corresponding periods to use remained as “last year”, ie. January 2020 and February 2020. In contrast, for claims to be made for March 2021 and April 2021, the corresponding periods to use will be March 2019 and April 2019. In summary:
Claim month |
Lookback period |
November 2020 |
November 2019 |
December 2020 |
December 2019 |
January 2021 |
January 2020 |
February 2021 |
February 2020 |
March 2021 |
March 2019 |
April 2021 |
April 2019 |
Note that for claims for February 2021, as 2020 was a leap year and the corresponding February 2020 had 29 days, the full pay for February 2020 can be used or an adjustment can be made of 28/29ths of that amount.
Reference pay – variably paid employees
To clarify, for claims made for March 2021 or April 2021, the reference pay for variably paid employees who were on the payroll on 19 March 2020, is to be based on the higher of:
For employees who were on the payroll on 30 October 2020, but were not eligible previously, their reference pay will remain as their average pay between 6 April 2020 and the day before the first day of their furlough period.
Usual hours – variably paid employees
For claims made for March 2021 and April 2021, the usual hours for variably paid employees who were on the payroll on 19 March 2020, is to be based on the higher of:
For employees who were on the payroll on 30 October 2020, but were not eligible previously, their usual hours will remain as their average hours between 6 April 2020 and the day before the first day of their furlough period.
Deadline dates
The claim submission deadlines dates have been confirmed as:
The deadline dates for claim amendments are:
Annually paid directors
In addition, HMRC have now clarified the treatment of furloughing annually paid directors.
They have now stated that furlough claims can be submitted for annually paid directors only where there is an “imminent” payroll run. This was not previously stipulated and it was implied that monthly furlough claims could be submitted in advance of the next annual payment.
We therefore believe there to be two options as follows:
We are here to help
We are of course here to help and we will provide further updates as and when more information is published. If you would like to discuss the support available, or have any other queries, please get in touch with your usual Azets contact or a member of our Employment Tax team.