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COVID-19: How will the CJRS (Furlough) Scheme change from 1 May?

The latest guidance has been published to further update the provisions of the Coronavirus Job Retention Scheme (CJRS).

Andrew Collier
Andrew Collier HR Adviser
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COVID-19: updated HMRC guidance to address operation of CJRS from May 2021

On 8 April 2021, HMRC made (thankfully, mostly) minor changes to the various guidance notes relating to the Coronavirus Job Retention Scheme (CJRS).  The more notable changes were:

  • New guidance on how to identify whether an employee's relevant reference day is 19 March 2020, 30 October 2020 or 2 March 2021.

  • New guidance and worked examples on calculating usual working hours and 80% of wages for non-fixed rate employees with a relevant reference day of 2 March 2021. As with non-fixed rate employees with a relevant reference day of 30 October 2020, only the averaging method may be used where an employee has a relevant reference day of 2 March 2021.

  • When using the averaging method to calculate average wages for non-fixed rate employees for claim periods starting on or after 1 May 2021, days spent on family-related statutory leave, "statutory sick pay leave" or "reduced rate paid leave" following the leave, and related wages, should not be taken into account. The exception to this rule is where an employee was on one of these types of leave throughout the entire period used to calculate their average wages. In this case, such days and related wages should be included. 

  • Multipliers for use when calculating grant amounts for July, August and September 2021, when the government contribution reduces (firstly to 70% and then to 60%). In addition, daily maximum wage amounts are provided for May 2021 to September 2021 inclusive.

The updated guidance also notes that, in the event of a TUPE transfer, employers should ensure that information needed for future claims under the CJRS is passed on to the new employer (including an employee's relevant reference day and details of 80% of the employee's wages).

A further Treasury Direction in respect of the extension of the CJRS from 1 May to 30 September 2021 is awaited.  In theory, this ought to be the last one ever............

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