Under the Coronavirus Job Retention Scheme (CJRS), all employers in the UK are able to access support to continue paying part of employees’ salaries who would otherwise have been laid off during the ongoing crisis.

Furloughed workers are employees whose employers cannot cover staff costs due to coronavirus, and as such they have been asked to stop working but have not been made redundant.

Such employers are now able to access support to continue paying part of their staff’s wages, in order to avoid redundancies and so they can retain their teams.

To avoid fraud, there are expected to be cross-checks between the applications for grants against PAYE records for each employer.

CJRS launched on Monday 20 April, just a month after it was announced. The claim can be made up to 14 days in advance of payroll payments. However, only one claim can be made during a claim period, so it would be advisable to make the claim shortly before or during running payroll.

Before you make a claim, please read all the available guidance at GOV.UK  and gather all the information and the precise calculations. HMRC had previously stated that the session would time out after 30 minutes of inactivity and advised users to have all the information ready before starting the application to avoid typing in the information again. A facility to save the progress on a claim and return to it later has now been added. This should be particularly helpful for claims with higher numbers of employees but below 99 where a spreadsheet upload method cannot be used. 

Latest HMRC update (15 May)

Employer guidance: Check if you can claim for your employees' wages through the Coronavirus Job Retention Scheme

Claim for wages through the Coronavirus Job Retention Scheme (main page)

  • Added that records must be kept for at least six years

  • Clarification around where employers can search for employee's national insurance numbers

  • Added wording to the 'After you've claimed' section, which was removed from the 'Work out 80% if your wages' page.

Page 1:  Check if you can claim for your employees' wages through the Coronavirus Job Retention Scheme

Page 2: Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme

Page 3: Work out 80% of your employees' wages to claim through the Coronavirus Job Retention Scheme

  • HMRC has provided further clarification on calculations of variable employee pay such as non-discretionary overtime and other payments to better explain what meets the criteria. 
  • New guidance has been provided on deciding on the period of grant to be claimed and ensuring that all employees covered by that pay period are covered in one claim; currently there is no facility to amend claims (although this is being developed) and the system will not allow multiple claims for the same or overlapping periods.
  • Examples from this page have now been moved to a separate page.
  • Holiday entitlement guidance has been added to the 'Holiday Pay' section.  

Page 4: Examples for ‘Work out 80% of your employees' wages to claim through the Coronavirus Job Retention Scheme

  • This has now been moved into a new separate page for this content, although there are no changes to the actual content. 

Page 5: Reporting employees' wages to HMRC when you've claimed through the Coronavirus Job Retention Scheme

  • There are currently no further changes to this page.

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Getting started

Prior steps required

  • The client will need to have enrolled for PAYE online for employers (activation codes have now been temporarily suspended so this is instantaneous).  

  • The agent must also be enrolled for PAYE online services for agents.

  • The agent needs to give their Agent Government Gateway ID to the client.

  • The link to sort code checker can be found here.

  • Employee guidance is available here.

  • Employer guidance is available here.

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Steps for the client to authorise the agent

  • The client signs into HMRC online services (their business tax account).  

  • In the business tax account, select manage account' and select the 'Add, view or change tax agent' option under the heading 'Tax Agents'.  

  • Select 'PAYE for employers' and click continue.

  • On the 'Manage who can access your taxes and schemes' page, click the 'Add an agent' link next to the service that you want to assign an agent for (eg PAYE).

  • Enter your agent's Government Gateway ID provided to you by your agent and click continue.

  • Click on 'Add agent' to confirm you want to add the selected agent.

  • You will receive confirmation the agent has been added on the screen.

Businesses, and agents who are authorised to act on behalf of clients for PAYE matters, will be able to claim. However, file-only agents, including payroll bureaus, will not be able access the service due to data protection reasons.

To make a claim, employers will need the following information:

  • employer PAYE reference number
  • number of employees
  • employees' names, national insurance numbers and payroll/works numbers 
  • your self-assessment, corporation tax unique taxpayer reference or company registration number
  • the claim period and amount claimed  
  • employer's bank account number and sort code
  • employer's address
  • contact details of the person making the claim.

You can claim for payments made and to be made within the next 14 days.

In the future there will be the ability to correct errors.

Further information:

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CJRS engagement letter template

ACCA members are advised to supplement their existing ACCA approved letters of engagement for payroll services with the additional services being offered, if they have been asked to prepare and/or submit the furlough grant claims on behalf of their clients.

A template of ‘Schedule of Services’ to supplement the Engagement letter -Coronavirus Job Retention Scheme (CJRS) can be accessed here. The schedule should be used in conjunction with our engagement letter guidance.

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Screen shots (for illlustration only)

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First landing page

furlough-2

Accept and continue

furlough-3

Confirmation about furloughed process 

furlough-4

Information about wages paid 

furlough-5

Information about the company’s tax return 

furlough-6

Company’s UTR number 

furlough-7

Name of employer 

furlough-8

Claim period end date cannot be more than 14 days in the future and it cannot end after 31 May 2020. 

Number of employees furloughed 

furlough-13

Total amount of the claim showing separate: wages, Employer NIC and employer minimum pension contributions 

furlough-15

Employee details 

furlough-17

Bank account details (client and not agent) 

furlough-18

Client’s address 

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Details of the person making the claim 

furlough-20

This is followed by the summary and submission. 

How the scheme works

  • The employer should have created and started a PAYE payroll scheme on or before 19 March 2020, be enrolled for PAYE online and have a UK bank account.
  • You can only claim for furloughed employees who were on your PAYE payroll on or before 19 March 2020 and who were notified to HMRC on an RTI submission on or before 19 March 2020. 
  • Employees who were employed as of 28 February 2020 and on payroll (ie notified to HMRC on an RTI submission on or before 28 February) and were made redundant or stopped working for the employer after that and prior to 19 March 2020, can also qualify for the scheme if the employer re-employs them and puts them on furlough.
  • There is a minimum three-week furlough period. 
  • The employer should discuss the situation with affected employees and, following agreement, notify them in writing that they have become ‘furloughed workers’. The employer should keep this record for five years.
  • A free template for an agreement to temporarily send home an employee because there’s no work ('furlough') can be downloaded (free of charge) from ACAS’s website.
  • The employer could choose to fund the difference between this payment and the employee’s salary but does not have to. 
  • The employees remain on the payroll deducting tax and national insurance under the pay as you earn (PAYE) system.
  • The furloughed workers should not undertake work for their employer while they are furloughed. 
  • If an employee is working, but on reduced hours or for reduced pay, they will not be eligible for this scheme; you will have to continue paying the employee through your payroll and pay their salary subject to the terms of the employment contract you agreed.
  • If an employee’s salary is reduced as a result of these changes, the employee may be eligible for support through the welfare system, including universal credit. 
  • If an employee is on sick leave or self-isolating as a result of coronavirus, they will be able to get statutory sick pay. 
  • Employees who are currently off sick and are eligible to be furloughed should no longer receive sick pay and would be classified as furloughed. 
  • The scheme is available to all employees including sole director/shareholder companies. However, only the regular salary element paid via payroll will be eligible for the scheme – dividends are not included.
  • A sole director of a limited company can be an employee for the purposes of the furlough, provided there is an employment relationship between the company and the individual. They may also need to evidence any distinction between the director’s role as an officeholder and that of the employee. Where furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so provided they do no more than would reasonably be judged necessary for that purpose: for instance, they should not do work of a kind that they would carry out in normal circumstances to generate commercial revenue or provide services to or on behalf of their company. This also applies to salaried individuals who are directors of their own personal service company (PSC). 
  • The employer can claim a grant of the lower of 80% of an employee’s regular salary or £2,500 per month, plus the associated employer NI contributions (NIC) and minimum automatic enrolment employer pension contributions on paying those wages.
  • If the employer chose to top up employees’ wages, it cannot claim for employer NICs on the topped-up amount.
  • If the employer claims Employment Allowance, you need to adjust for the Employment Allowance. If you do not have to pay any employer NICs in a pay period, you should not claim any employer NICs costs through the scheme.
  • If the amount of Employment Allowance you claim will not cover the total NICs due, you can claim the lower of: 
    -the grant towards employer NICs costs that you’ve already calculated 
    -the employer NICs costs that you paid, or expect to pay, across your entire payroll.
  • If the furloughed employee is a company director, and if the method used to calcualte a director’s Class 1 NICs is annual cumulative method, and if by the time you make the claim there is no NIC due, then you cannot claim a grant towards employer NICs costs.

HMRC guidance includes a calculator that can be used to work out the claim for most employees who are paid either regular or variable amounts each pay period (for example, weekly or monthly).  

There are exceptions to this for employees who have returned from maternity leave in the last three months, get director’s payments, have been transferred under TUPE, have been employed at separate times throughout the year, receive employer pension contributions outside of an auto-enrolment pension scheme, receive any discretionary payments, or have an annual pay period

  • To work out pro-rata amounts of pay for non-standard periods (ie not weekly or monthly), you can use the daily maximum wage amounts, as below: 
    £80.65 for March 
    £83.34 for April 
    £80.65 for May 
    £83.34 for June

  • If you’re claiming for 100 or more furloughed employees, you’ll need to upload a file in .xls, .xlsx, .csv or .ods formats. You’ll need ensure that you provide only the employee information requested below as any more or less information provided than required may risk delaying your payment. You could also be asked to provide the information again. You should ensure that your data file contains only one line per employee for the whole period, does not break up the calculation into multiple periods within the claim or split data by contract type. HMRC will expect the following information for each employee:
  • full name
  • national insurance number
  • payroll number (optional)
  • furlough start date
  • furlough end date (if known)
  • full amount claimed.
  • The employer could choose to fund the difference between this payment and the employee’s salary but does not have to.

  • The employees remain on the payroll deducting tax and national insurance under the pay as you earn (PAYE) system. 

  • The furloughed workers should not undertake work for their employer while they are furloughed.

  • If an employee is working, but on reduced hours or for reduced pay, they will not be eligible for this scheme; you will have to continue paying the employee through your payroll and pay their salary subject to the terms of the employment contract you agreed.

  • If an employee’s salary is reduced as a result of these changes, the employee may be eligible for support through the welfare system, including universal credit.

  • If an employee is on sick leave or self-isolating as a result of coronavirus, they will be able to get statutory sick pay. 

  • Employees who are currently off sick and are eligible to be furloughed should no longer receive sick pay and would be classified as furloughed.

  • The scheme is available to all employees including sole director/shareholder companies. However, only the regular salary element paid via payroll will be eligible for the scheme – dividends are not included.

  • A sole director of a limited company can be an employee for the purposes of the furlough, provided there is an employment relationship between the company and the individual. They may also need to evidence any distinction between the director’s role as an officeholder and that of the employee. Where furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so provided they do no more than would reasonably be judged necessary for that purpose: for instance, they should not do work of a kind that they would carry out in normal circumstances to generate commercial revenue or provide services to or on behalf of their company. This also applies to salaried individuals who are directors of their own personal service company (PSC).

The basis for establishing the director’s employment status would be dependent on facts such as:

  • whether there is a genuine contract of employment between the director and the limited company
  • whether a ‘statement of written particulars’ has been issued, providing a distinction between officeholder duties and those of an employee
  • what the obligations of each party are in pursuance of the contract
  • where one or more individual directors’ furlough is so decided by the board, this should be formally adopted as a decision of the company, noted in the company records and communicated in writing to the director(s) concerned.

Annual payroll submission date after 19 March

  • Employers that operate a yearly payroll scheme with the submission date being after 19 March 2020 might need to call HMRC to process the CJRS application manually over the phone in order to bypass the online computer checks, which obviously assumes if no FPS was submitted in the tax year 2019/20 before 19 March 2020 then they are not on payroll. This is presumably intended to prevent bogus claims but inadvertently blocks genuine claims.

The CJRS started on 1 March 2020 and the Chancellor announced on 12 May that the scheme will run in the current form until the end of July. From the start of August, furloughed workers will be able to return to work part-time, with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

More specific details and information around its implementation will be made available by the end of this month.

Where you are taking decisions that are not yet in legislation, research, seek guidance and document the approach taken. There will inevitably be a number of ‘reasonable excuse claims’.

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Maternity leave, adoption leave, paternity leave, shared parental leave and parental bereavement leave (updated 6 May 2020)

  • For employees on maternity leave, adoption leave, paternity leave, shared parental leave or parental bereavement leave, the normal rules for maternity and other forms of parental leave and pay apply. The employer may need to calculate the average weekly earnings, if employees were put on furlough and then started leave on or after 25 April 2020 for: maternity pay, adoption pay, paternity pay, shared parental pay and parental bereavement pay.
  • If the employee is getting maternity allowance, she cannot get furlough pay at the same time.
  • If the employee has agreed to be put on furlough, she must contact Jobcentre Plus to stop maternity allowance payments.
  • If the employee agrees to go on furlough and end her maternity leave early, she will need to give the employer at least eight weeks’ notice and she will not be eligible for furlough pay until the end of the eight weeks.

If an employee is pregnant and about to start maternity leave

  • If the employee’s earnings have been reduced because she was off sick before her maternity leave started, this may affect her statutory maternity pay.
  • If the employee’s earnings have been reduced because she was put on furlough and then started family-related statutory leave on or after 25 April 2020, the amount she receives in pay should not be affected. If she started family-related statutory pay before 25 April 2020, her entitlement may be affected. The same rules apply to adoption pay, paternity pay, shared parental pay and parental bereavement pay.

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Apprentices

Apprentices can be furloughed in the same way as other employees and they can continue to train while furloughed. 

However, the employer must pay their apprentices at least the Apprenticeship Minimum Wage/National Living Wage/National Minimum Wage as appropriate for all the time they spend training. This means the employer must cover any shortfall between the furloughed amount claimed under CJRS and their appropriate minimum wage.

Guidance is available for changes in apprenticeship learning arrangements in England, Scotland, Wales and Northern Ireland

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Bank holidays

If an employee usually works on bank holidays then the employer can agree that this is included in the grant payment. If the employee usually takes the bank holiday as leave, then the employer would either have to top up their usual holiday pay or give the employee a day of holiday in lieu.

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Holiday entitlement and pay (updated 15 May 2020)

An explanation of how holiday entitlement and pay operate during the pandemic has been published by the Department for Business, Energy & Industrial Strategy. 

  • The legal minimum holiday entitlement is 5.6 weeks. Workers and employers can agree to alter the terms of the worker’s contract, provided it does not go below the statutory minimum of 5.6 weeks.

  • Holiday pay, whether the worker is on furlough or not, should be calculated in line with current legislation, based on a worker’s usual earnings.

  • Where this calculated rate is above the pay the worker receives while on furlough, the employer must pay the difference. However, as taking holiday does not break the furlough period, the employer can continue to claim the 80% grant from the government to cover most of the cost of holiday pay.

  • New legislation has changed the rules regarding carrying annual leave into future leave years where the impact of coronavirus means that it has not been reasonably practicable to take it in the leave year to which it relates. Under the new legislation, the untaken amount may be carried forward into the following two leave years. When calculating how much holiday a worker can carry forwards, employers must give workers the opportunity to take any leave that they cannot carry forward before the end of the leave year.

  • Workers who are on furlough are unlikely to need to carry forward statutory annual leave, as they will be able to take it during the furlough period.

  • If the employer is unable to fund the difference, it is likely that this would make it not reasonably practicable for the worker to take their leave, enabling the worker to carry their annual leave forwards.

  • In this situation, the worker must still be given the opportunity to take their annual leave, at the correct holiday pay, before the carried annual leave is lost at the end of the next two leave years.

  • Generally, employers remain able to require workers to take annual leave to ensure that holiday is taken in the leave year to which it relates.

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Employees on a fixed-term contract (updated 24 April 2020)

An employee on a fixed-term contract can be re-employed, furloughed and claimed for if either:

  • their contract expired after 28 February 2020 and an RTI payment submission for the employee was notified to HMRC on or before 28 February 2020

  • their contract expired after 19 March 2020 and an RTI payment submission for the employee was notified to HMRC on or before 19 March 2020.

If the employee’s fixed-term contract has not already expired, it can be extended or renewed. You can claim for them if an RTI payment submission for the employee was notified to HMRC on or before 19 March 2020.

Employees who started and ended the same contract between 28 February 2020 and 19 March 2020 will not qualify for this scheme. This is not specific to employees on fixed-term contracts; the same would apply to employees on all other contracts.

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A word about scams

Stay vigilant about scams, which may mimic government messages such as 'Stay at home' and 'Stay home, stay safe', as a way of appearing authentic and unthreatening.

Don’t give out private information or reply to text messages, and don’t download attachments or click on links in texts or emails you weren’t expecting.

You can forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.

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ACCA code of ethics and conduct and anti-money laundering regulations

ACCA members are reminded that:

  • They should not be associated with any information that they believe is false, inaccurate or misleading
  • They should act within the requirements of Professional Conduct in Relation to Taxation (PCRT) in handling the tripartite relationship between themselves, their clients (or employers in the case of in-house advisers) and HMRC. 
  • If they have a suspicion of financial crime (which would on the face of it include deliberately claiming furlough payments for employees who are then required to keep working) they should report this to their firm’s money laundering reporting officer (MLRO) or, in the case of sole practitioners, consider making a suspicious activity report (SAR).This obligation overrides client confidentiality.  

Find out more here

HMRC has stated that the employer must return any grants back to HMRC immediately if they are unwilling or unable to use it to pay their employee’s salary and the employer NICs and pension contributions.

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Furloughed employees and employment law

Is an employer required to fund the difference between the grant received and full salary? 

No, but the scheme is being designed with underlying reference to employment law.

The general principle for employees (not for casuals or agency workers) is that an employer cannot reduce unilaterally an employee's pay without their consent unless the employer has provided for reduced payment in the contract of employment (which is relatively rare). 

Thus, if an employer unilaterally imposes a pay cut on an employee that constitutes a breach of contract, that would entitle an employee to leave and claim constructive dismissal (less likely in the current circumstances) or remain with the employer under protest and make a claim for back wages on the basis of unlawful deduction.  

The key message is to talk to the employees and probably the most sensible course of action is to make any changes to the employment contract in writing.

Is it mandatory for an employee to accept furlough?

An employee does not have to accept furlough if offered, but the employer could then make the employee redundant instead, using the usual employment law procedure. 

Can the employer decide which employees should be furloughed? 

Identifying which workers to furlough will largely be a business decision, but employers should ensure they follow a fair, well-documented process. If sufficient numbers of staff are involved, it may be necessary to engage collective consultation processes to procure agreement to changes to terms of employment. Employers are advised to treat such processes in the same way as redundancies to minimise the risk of tribunal claims.

Are furloughed employees treated as being made redundant?

No. This period is considered as continuous employment; they retain their seniority and all other continuous employment rights.

Can a furloughed employee take on another job with a different employer? 

Because a furloughed employee remains on the payroll, they are treated as an employee, so they are subject to the terms of the contract of employment.

Most contracts would prevent an employee working for another firm while employed by their current employer. If an employee wants to take another job while furloughed, they will need to seek consent from their current employer. However, those employees who have more than one employment allowed under the terms of their employment contract can continue to work for another employer while being on furlough with one employer. If all employers put such an employee on furlough, they would be entitled to claim 80% of each employment under the JRS.

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Pension contribution payments (updated 30 April 2020)

The Pensions Regulator has advised that the employer’s duty to pay pension contributions has not changed. Contributions will be based on payments made to workers, and employers must meet the statutory minimum pension contributions. 

If the employer fails to pay the contribution on time, the pension provider is still required to report employers to The Pensions Regulator for failed payments. However, the regulator also understands these are exceptionally challenging times and for this exceptional period it requires pension providers to report employers for late payment when they are over 150 days late in paying, rather than the previous 90 days. This gives the employer a longer period to bring the payments up to date before being formally reported to the Regulator.

The regulator has published the following statement:

'We know this is a challenging time for everyone and we recognise the strain this is putting on employers. We will take a proportionate and risk-based approach towards the enforcement of decisions, in light of these challenging times, with the aim of helping to get employers back on track and supporting both employers and savers.'

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Examples of monthly claims

Example 1 (using 2019/20 rates)

Full-time or part-time employee on the payroll as at 28 February 2020 earning basic salary of £3,500 per month gross. Use February payroll figure to claim up to 80% of gross pay, capped to £2,500, from 1 March 2020. 

JRS claim (80% of £3,500) = £2,800 (A) 

JRS cap = £2,500 (B) 

Maximum claim gross pay (lower of A or B) = £2,500 

Plus: employer’s NIC 13.8%x (2,500-719) =£245.78 

Plus: employer’s minimum auto-enrolment contributions 3% x (2500-512) = £59.64 (3% of qualifying earnings) 

Total JRS claim = £2,805.42 

The employer can choose (but is not obliged) to fund the difference in salary of £1,000 per month not reimbursed through JRS and pay any additional employer’s NIC and auto-enrolment contributions. 

Example 1A (using 2020/21 rates)

Full-time or part-time employee on the payroll as at 28 February 2020 earning basic salary of £3,500 per month gross. Use February payroll figure to claim up to 80% of gross pay, capped to £2,500, from 1 March 2020. 

JRS claim (80% of £3,500) = £2,800 (A) 

JRS cap = £2,500 (B) 

Maximum claim gross pay (lower of A or B) = £2,500 

Plus: employer’s NIC 13.8%x (£2,500-£732) = £243.98 

Plus: employer’s minimum auto-enrolment contributions 3% x (£2,500-£520) = £59.40 (3% of qualifying earnings) 

Total JRS claim = £2,803.38 

The employer can choose (but is not obliged) to fund the difference in salary of £1,000 per month not reimbursed through JRS and pay any additional employer’s NIC and auto-enrolment contributions. 

Example 2 (using 2019/20 rates)

Full-time or part-time employee on the payroll as at 28 February 2020 earning basic salary of £2,000 per month gross. Use February payroll figure to claim up to 80% of gross pay, capped to £2,500, from 1 March 2020. 

JRS claim (80% of £2,000) = £1,600 (A) 

JRS cap = £2,500 (B)  

Maximum claim gross pay (lower of A or B) = £1,600 

Plus: employer’s NIC 13.8%x (£1,600-£719) = £121.58 

Plus: employer’s minimum auto-enrolment contributions 3% x (£1,600-£512) = £32.64 

Total JRS claim = £1,754.22 

The employer can choose (but is not obliged) to fund the difference in salary of £400 per month not reimbursed through JRS and pay any additional employers’ NIC and auto-enrolment contributions. 

Example 2A (using 2020/21 rates)

Full-time or part-time employee on the payroll as at 28 February 2020 earning basic salary of £2,000 per month gross. Use February payroll figure to claim up to 80% of gross pay, capped to £2,500, from 1 March 2020. 

JRS claim (80% of £2,000) = £1,600 (A) 

JRS cap = £2,500 (B) 

Maximum claim gross pay (lower of A or B) = £1,600 

Plus: employer’s NIC 13.8%x (£1,600-£732) = £119.78 

Plus: employer’s minimum auto-enrolment contributions 3% x (£1,600-£520) = £32.40 

Total JRS claim = £1,752.18 

The employer can choose (but is not obliged) to fund the difference in salary of £400 per month not reimbursed through JRS and pay any additional employers’ NIC and auto-enrolment contributions. 

Example 3 (using 2019/20 rates) 

Employee on zero-hour contract employed since January 2019; monthly gross pay for March 2019 was £1,800; average gross pay for period April 2019 to February 2020 is £1,950. Use the higher of March 2019 pay (£1,800) and average earnings for 2019/20 to date (£1,950), to claim up to 80% of gross pay, capped to £2,500, from 1 March 2020. 

JRS claim (80% of £1,950) = £1,560 (A) 

JRS cap = £2,500 (B) 

Maximum claim gross pay (lower of A or B) = £1,560 

Plus: employer’s NIC 13.8%x (£1,560-£719) = £116.06 

Plus: employer’s minimum auto-enrolment contributions 3% x (£1,560-£512) = £31.44 

Total JRS claim = £1,707.50 

Example 3A (using 2020/21 rates) 

Employee on zero-hour contract employed since January 2019; monthly gross pay for March 2019 was £1,800; average gross pay for period April 2019 to February 2020 is £1,950. Use the higher of March 2019 pay (£1,800) and average earnings for 2019/20 to date (£1,950), to claim up to 80% of gross pay, capped to £2,500, from 1 March 2020. 

JRS claim (80% of £1,950) = £1,560 (A) 

JRS cap = £2,500 (B) 

Maximum claim gross pay (lower of A or B) = £1,560 

Plus: employer’s NIC 13.8%x (£1,560-£732) = £114.26 

Plus: employer’s minimum auto-enrolment contributions 3% x (£1,560-£520) = £31.20 

Total JRS claim = £1,705.46

For further examples, please see HMRC guidance

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More information

Find out more with the following resources:

Please also see ACCA’s suite of technical factsheets on employment law  and the article, What is the priority for employers?

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