Claims for CJRS grants need to be made for furlough periods falling within a calendar month as the rules change nearly every month. The hours the employees work may also vary right up until the end of the month, especially when staff are required to isolate, so it is advisable not to complete the CJRS claim until after the month end.
If you have already started a CJRS claim for July and the employer then tells you that staff worked different hours, you can delete that claim within 72 hours of starting it, and begin again. Otherwise, you will have to correct any errors in the CJRS claim within 28 days (plus weekend) of the end of the month the claim relates to, which will be 31 August for July claims.
If you are claiming for 16 or more employees you can use the HMRC template, which makes the process a bit easier.
It is perfectly acceptable to put staff on furlough if they are unable to work because they are self-isolating. Using the CJRS the staff member should receive at least 80% of their usual wage, which will almost certainly be more than the SSP rate of £96.35 per week.
Remember that CJRS claims relating to furlough periods in July can only include 70% of the employee’s usual wage, although the employer must pay 80% of the usual wage for those furloughed periods capped at £2,500 per month. The employer must therefore carry 10% of the wage cost for furlough time plus all the employer’s NIC and all employer’s pension contributions.
The CJRS claims for July furlough periods must be submitted by Monday 16 August.
For furlough periods in August and September the CJRS claim will only cover 60% of the employee’s usual wages, up to £1,875 per employee for the month. The employer must continue to pay the employee 80% of their usual wage for furlough periods. The CJRS will come to an end on 30 September 2021.
Written by the Tax Advice Network