When CJRS was first introduced back in March 2020, there were a number of employees, paid via an annual payroll, that were not eligible for the furlough grants. Typically, this related to directors who paid themselves an annual salary at the end of the tax year, which was after 19 March, the original eligibility cut-off date. When the chancellor announced that the scheme would be extended past the original end date of 31 October 2020, he also changed the eligibility criteria so that those who were not previously eligible, could now be eligible for the extension to the scheme. Included in the change are those who were paid an annual salary after 19 March 2020, but before 30 October 2020. There has been some confusion on how the furlough claim would be calculated for those who were paid an annual salary. In the latest guidance update, HMRC has now made it clear how to calculate the furlough claim and includes an example of this in practice. The addition to the guidance on this subject will, we are sure, be of great help to payroll professionals who are calculating furlough for those on an annual payroll. In addition, HMRC has added more information for those that are eligible to claim the Employer Allowance (EA). Employers are reminded that they should adjust their EA claim to reflect the amount of National Insurance (NI) claimed under the original scheme. HMRC point out within this section that making a claim for NI under CJRS and not adjusting the EA to reflect what has been claimed, could be deemed as fraud. Full and further details on this can be read here.
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The publication of information relating to CJRS claims 20 January 2021
HMRC has confirmed that, on 26 January 2021, it will be publishing a list of employer names who have claimed via the Coronavirus Job Retention Scheme (CJRS) for periods starting on or after 1 December 2020. This information will be made available on GOV.UK. It is the intention that, from February, more information will be provided, in relation to an indication of the value of claims and the Company Registration Numbers (for those that have one) of employers who have made claims periods commencing on or after 1 December 2020. The published value of the claims will be provided within a banded range. Details of what the banded ranges are can be found here. As already confirmed, HMRC will not publish details of employers claiming through the scheme if they can demonstrate that the publication would result in a risk of violence or intimidation to individuals, or anyone living with them. There is an online application form for any employers in this position to complete. HMRC will refrain from publishing the details until a decision has been made, and the relevant employer notified. Only one application needs to be submitted, as the decision will relate to all CJRS claim periods starting from 1 December 2020. These applications must be made by the employer and cannot be submitted on their behalf by an agent.
The details of CJRS claims will be published on a monthly basis, as part of HMRC’s commitment to transparency and to attempt to prevent fraudulent claims from being made.
Additionally, employees will have the option of checking whether a CJRS claim has been made on their behalf through their online Personal Tax Account, from February 2021 onwards.
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CJRS: calculations for claim periods relating to February 2021 25 January 2021
HMRC has confirmed that, despite the fact that February 2020 lasted for 29 days, as last year was a leap year, this will have no impact on the calculation of claims made under the Coronavirus Job Retention Scheme (CJRS) relating to February 2021.
For employees whose pay varies, claimants should calculate 80% of the higher of:
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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