Furlough Extension to 31 March 2021

Monthly Payroll

• You and/or your employee(s) can claim for a grant to pay 80% of the current salary for hours not worked, up to a maximum of £2,500, based on the gross salary calculated in October 2020.

Full Furlough

• 80% of the gross monthly salary will be calculated under CJRS 
• 20% or the balance of your gross salary, the Employers NI and pension contributions will be payable by the employer. 
• Alternatively, you can opt to claim and pay yourself the 80% only. 

Flexible Furlough

• 80% of the gross hours not worked in the month will be calculated under CJRS 
• The hours worked will be calculated as paid salary. 
• Your salary, Employers NI and pension contributions will be payable by the employer. 

Payments

• You must pay yourself and your employees on the date shown on the payslip. 
• HMRC PAYE liabilities must be paid by the due date. 
• It is important that the grant is used for salary and HMRC liability settlements only. 

Submission of CJRS

• Avar will prepare a summary each month of the details and amount to be claimed. 
• This will include company details, business bank account, employee(s) details, and workings. 
• The November CJRS claims must be submitted no later than 14 December 2020. 
• HMRC will endeavour to pay the claims submitted within 7 working days. 

HMRC

You must: 

• Keep a written record of the Furlough agreement for 5 years. 
• Keep records of how many hours were worked and the number of hours furloughed (for example, not working), for 6 years. 
• HMRC have said that they will investigate employers using the CJRS to ensure the rules were followed. 
• HMRC link for further guidance 
  • https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme 
  • https://www.gov.uk/government/publications/phishing-and-bogus-emails-hm-revenue-and-customs-examples/phishing-emails-and-bogus-contact-hm-revenue-and-customs-examples