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Examples are provided below of calculations of the CJRS claim which will apply to the flexible furloughing for periods to 31 October 2020 and the CJRS Extension period from 1 November 2020 to 31 March 2021 covering:
The examples are provided from HM Revenue & Customs and links are provided to guidance on the GOV.UK website where this may be helpful.
We will be pleased to answer any queries you may have on any of the matters on the flexible furlough CJRS and the CJRS Extension – please email your query to Grazyna.baldwin@wsm.co.uk
Working out your claim period
Claim periods starting on or after 1 July 2020 must start and end within the same calendar month. For these months, if your pay period includes days in more than one month, you’ll need to submit separate claims covering the days that fall into each month. You should calculate each of those claims separately.
Claim periods cannot overlap, so you will need to make sure you include all of the employees you want to claim for in each claim you make.
Read guidance on a pay period spanning two months.
Sam has a 4-week pay period which falls 20 July 2020 to 16 August 2020. A Ltd cannot claim for this as a single period so makes two separate claims:
Working out your employee’s usual hours and furloughed hours
You’ll work out your employee’s usual hours (for employees with fixed hours), by looking at their contracted hours at the end of their reference period.
The reference period is the last pay period ending on or before 19 March 2020 for employees who either:
Read guidance on how to work out usual hours for employees who are contracted for a fixed number of hours.
Example A
Alex is contracted to work for 37 hours in each week, across 5 working days. She is paid weekly. B Ltd looks to make a flexible furlough claim for the period starting from 1 August 2020 until 10 August 2020 (10 calendar days). There are two pay periods partially in this claim period:
B Ltd calculates the usual hours for the days in each pay period that are in their claim.
B Ltd is calculating on a pay period basis so they must round the nearest number of usual hours for each pay period up or down to the nearest whole number.
Alex’s reference period is the last pay period ending on or before 19 March 2020.
B Ltd first calculates the usual hours for the days they are claiming for in the pay period 29 July 2020 to 4 August 2020 as follows:
B Ltd next calculates the usual hours for the days they are claiming for in the pay period 5 August to 11 August as follows:
Example B
Brian is contracted to work on a shift pattern of four consecutive 12-hour days and then have four days off. This working pattern repeats every 8 days. Brian is paid calendar monthly. C Ltd looks to make a flexible furlough claim for the period 1 July 2020 to 31 July 2020 (31 calendar days). The pay period and the claim period align.
Brian’s reference period is the last pay period ending on or before 19 March 2020.
C Ltd calculates the usual hours for the July pay period by following the steps below:
Example C
Rich is paid calendar monthly, and his last pay period ending on or before 19 March 2020 ended on 29 February 2020.
Rich’s reference period is the last pay period ending on or before 19 March 2020.
In the pay period ending 29 February 2020, he was off sick for 7 days.
When calculating the hours Rich was contracted for at the end of the reference period, the usual hours should be calculated as if he had not taken that leave.
For all other employees, the employee’s reference period will be their last pay period ending on or before 30 October 2020. These employee’s will only be eligible for periods starting on or after 1 November 2020.
Example
Mandy is contracted to work for 37 hours in each week, across 5 working days. She is paid weekly. D Ltd looks to make a flexible furlough claim for the period starting from 1 November 2020 until 8 November 2020 (8 calendar days). There are two pay periods partially in this claim period:
D Ltd calculates the usual hours for the days in each pay period that are in their claim.
D Ltd is calculating on a pay period basis so they must round the nearest number of usual hours for each pay period up or down to the nearest whole number.
Mandy started working for D Ltd on 3 August 2020. She had not received a payment of earnings from D Ltd in the tax year 2019-20 which was reported on a Real Time Information (RTI) Full Payment Submission (FPS) to HMRC on or before 19 March 2020. The reference period for Mandy is the last pay period ending on or before 30 October 2020.
D Ltd first calculates the usual hours for the days they are claiming for in the pay period 26 October 2020 to 1 November 2020 as follows:
D Ltd next calculates the usual hours for the days they are claiming for in the pay period 2 November 2020 to 8 November 2020 as follows:
Average number of hours worked in the tax year 2019 to 2020 for an employee who works variable hours
To work out the usual hours for each pay period (or partial pay period) based on the average number of hours worked in the tax year 2019 to 2020:
When you calculate the number of calendar days in step 2, you should not count any calendar days where the employee was on a period of:
Read guidance on how to work out the average number of hours worked in the tax year 2019 to 2020 for an employee who works variable hours.
Ali started work for E Ltd in 2005. He is paid every two weeks and was furloughed on 23 March 2020. Ali had received a payment of earnings from E Ltd in tax year 2019-20 which was reported on a Real Time Information (RTI) Full Payment Submission (FPS) to HMRC on or before 19 March.
E Ltd calculates that Ali worked 1,850 hours between 6 April 2019 and 22 March 2020 (inclusive). This includes any hours that he received holiday pay for.
Ali will be paid for the pay period 1 July 2020 to 14 July 2020, and E Ltd is looking to make a flexible furlough claim for the same period (1 July 2020 to 14 July 2020).
E Ltd works out the average number of hours worked in the tax year 2019 to 2020 as follows:
E Ltd will also need to work out the usual hours based on the corresponding calendar period in the tax year 2019 to 2020, and use the higher figure for the usual hours.
Max started work for F Ltd in 2013. She is paid every four weeks and was furloughed on 31 March 2020. Max had received a payment of earnings from F Ltd in tax year 2019-20 which was reported on a Real Time Information (RTI) Full Payment Submission (FPS) to HMRC on or before 19 March.
Max will be paid for the pay period 1 July 2020 to 28 July 2020, and F Ltd is looking to make a flexible furlough claim for the same period (1 July 2020 to 28 July 2020).
F Ltd calculates that Max worked 616 hours between 6 April 2019 and 31 March 2020 (inclusive). This includes any hours that she received holiday pay for. She was on a period of statutory adoption leave between 1 June 2019 and 14 January 2020 (inclusive) – this is 228 days.
The number of days between 6 April 2019 and 30 March 2020 is 360 days (inclusive). F Ltd should not include the days where Max was on statutory adoption leave, leaving 132 days.
F Ltd works out the average number of hours worked in the tax year 2019 to 2020 as follows:
F Ltd will also need to work out the usual hours based on the corresponding calendar period in the tax year 2019 to 2020 and use the higher figure for the usual hours.
Usual hours worked in the same period last year for an employee who works variable hours and the pay period (or partial pay period) being claimed for starts and ends on the same calendar days as the identified pay period
To work out the usual hours for a pay period or partial pay period based on the corresponding calendar period in the tax year 2019 to 2020:
Read guidance on how to work out the usual hours worked in the same period last year for an employee who works variable hours and the pay period (or partial pay period) being claimed for starts and ends on the same calendar days as the identified pay period.
Peter is paid calendar monthly and has a calendar monthly pay period. G Ltd is looking to make a claim for the July 2020 pay period. Peter had received a payment of earnings from G Ltd in tax year 2019-20 which was reported on a Real Time Information (RTI) Full Payment Submission (FPS) to HMRC on or before 19 March.
Peter works variable hours so G Ltd needs to work out the usual hours based on the higher of either:
G Ltd works out the usual hours based on the corresponding calendar period in the tax year 2019 to 2020. G Ltd would need to look at the hours worked in July 2019.
G Ltd will also need to work out the average number of hours worked in the tax year 2019 to 2020.
Usual hours based on the hours worked in more than one pay period in the tax year 2019 to 2020
If you have to work out the usual hours based on the hours worked in more than one pay period in the tax year 2019 to 2020:
Read guidance on how to work out the usual hours based on the hours worked in more than one pay period in the tax year 2019 to 2020.
H Ltd processes a weekly payroll and is looking to make a claim for the period 20 July 2020 to 26 July 2020 for Ahmed, who works variable hours. Ahmed has worked for H Ltd since 2017. He had received a payment of earnings from H Ltd in tax year 2019-20 which was reported on a Real Time Information (RTI) Full Payment Submission (FPS) to HMRC on or before 19 March 2020.
H Ltd works out the usual hours based on the corresponding calendar period in the tax year 2019 to 2020. The corresponding calendar period in 2019 is 20 July 2019 to 26 July 2019. That period covers two pay periods in 2019:
In 2019, Ahmed worked the following hours:
H Ltd works out the usual hours based on the corresponding calendar period in the tax year 2019 to 2020 as follows:
Step 4 is that steps 1, 2 and 3 are repeated for each subsequent identified pay period. H Ltd will need to repeat steps 1, 2 and 3 for the next pay period:
There are no more pay periods in 2019 to consider:
The outcome is a whole number, so does not need to be rounded up to the next number.
Average number of hours worked in the tax year 2020 to 2021 for an employee who works variable hours
To work out the usual hours for each pay period (or partial pay period) based on the average number of hours worked in the tax year 2020 to 2021:
Read guidance on how to work out the average number of hours worked in the tax year 2020 to 2021 for an employee who works variable hours.
Fatima started work for I Ltd on 1 May 2020. She is paid every two weeks and was furloughed on 3 November 2020.
I Ltd calculates that Fatima worked 1,020 hours between 1 May 2020 and 2 November 2020 (inclusive). This includes any hours that she received holiday pay for.
Fatima will be paid for the pay period 15 November 2020 to 28 November 2020, and I Ltd is looking to make a flexible furlough claim for the same period (15 November 2020 to 28 November 2020).
I Ltd works out the average number of hours worked in the tax year 2020 to 2021 as follows:
Number of furloughed hours
If your employee is fully furloughed, you do not need to work out their usual and furloughed hours and you should work out the maximum wage amount. An employee is fully furloughed if they do not do any work for you during the claim period.
If your employee is flexibly furloughed, you will need to work out your employee’s usual hours and record the actual hours they work as well as their furloughed hours for each claim period.
Read guidance on calculating the number of furloughed hours.
Jess is furloughed from 1 April 2020 and becomes a flexibly furloughed employee on 10 July 2020. J Ltd claims weekly, in line with when it processes its payroll.
J Ltd is looking to claim for Jess for the period 22 July 2020 to 28 July 2020 (1 week). J Ltd works out her usual hours for this period to be 37 hours. Jess does not take leave in this period.
Jess and J Ltd agree that she will work 10 hours in the period 22 July 2020 to 28 July 2020. She works 10 hours in that period.
J Ltd calculates Jess’s number of furloughed hours as follows:
Jess is furloughed for 27 of her 37 usual hours.
Working out 80% of your employee’s normal wage
Maximum wage amount for part of a pay period
The maximum wage amount for claim periods between November 2020 and January 2021 is £2,500 a month, or £576.92 a week. This is the upper limit of the amount you can claim for your employee’s wages.
If the length of time you are claiming for is not one week or one month, you’ll need to use the daily maximum wage amounts to work out the maximum amount for each employee.
If you are claiming for multiple pay periods in one claim, you can calculate the total maximum using a mixture of:
Read guidance on how to work out the maximum wage amount.
K Ltd pays all their employees weekly on each Friday and puts all of their employees on furlough on Wednesday 8 April 2020.
K Ltd will need to calculate the maximum wage amount using the daily calculation for the first pay period which ends on Friday 10 April 2020. This is £83.34 multiplied by 3 days, which is £250.02.
For the next pay period, 11 April 2020 to 17 April 2020, the maximum amount is £576.92 because the pay period is a whole week, and the employees are furloughed on each day.
K Ltd makes a claim for 8 April 2020 to 17 April 2020. The maximum wage amount is the two amounts added, £826.94.
80% of wages for fixed rate full or part time employees on a salary where the reference period is last pay period ending on or before 19 March 2020
You will need to work out 80% of your employee’s usual wages to determine:
You can use the calculator to help you work out how much you can claim.
You will need to identify the number of furlough days in the period. A furlough day means every calendar day within a period where the employee was either:
The way you should work out 80% of your employee’s usual wages is different depending on the way they are paid. You must check what you can include as wages first.
Read guidance on how to work out 80% of wages for fixed rate full or part time employees on a salary.
Ash started work for L Ltd in 1997 and is paid a regular monthly salary on the last day of each month. He agreed to be placed on furlough from 23 March 2020. Ash was paid £2,400 for the last full monthly pay period before 19 March 2020. There are 9 days between 23 March and 31 March (inclusive).
His reference period is the last pay period ending on or before 19 March 2020.
L Ltd works out 80% of Ash’s wage:
Amina started work for M Ltd on 1 April 2020 and is paid a regular monthly salary on the last day of each month. She agreed to be placed on furlough from 2 November 2020. Amina was paid £2,400 for the last full monthly pay period before 30 October 2020. There are 29 days between 2 November 2020 and 30 November 2020 (inclusive).
Amina had not received a payment of earnings from M Ltd in the tax year 2019-20 which was reported on a Real Time Information (RTI) Full Payment Submission (FPS) to HMRC on or before 19 March 2020. The reference period for this employee is the last pay period ending on or before 30 October 2020.
M Ltd works out 80% of Amina’s wage:
Mo has a calendar month pay period and usually works 40 hours per week. He was paid £2,000 in the last full monthly pay period before 19 March 2020. Mo was furloughed continuously from 13 April 2020 to 30 June 2020. He is then flexibly furloughed from 1 July 2020, working 10 hours per week. The flexible furlough agreement ends on 12 July 2020 and Mo returns to work his full usual hours from 13 July 2020.
The reference period for Mo is the last pay period ending on or before 19 March 2020.
N Ltd works out 80% of Mo’s wage:
N Ltd should disregard any usual hours, working hours and furloughed hours after 12 July 2020 because Mo is no longer furloughed after that date, even if N Ltd has to claim for a longer period such as 1 to 31 July 2020 (for example to align claim periods when claiming for multiple employees).
80% of your employee’s wages if they have not been paid for a full pay period
You will need to work out your employee’s usual wages and then calculate 80% if:
To work out their usual wages and then calculate 80%:
Read guidance on how to work out 80% of wages if your employee’s reference period is not a full pay period up to 19 March 2020.
Ben started working for O Ltd on 21 February 2020 and is paid on the last day of each month. He is paid a fixed salary. Ben had not had a full pay period up to 19 March 2020 but was paid £700 as a pro-rata of his salary on 29 February 2020. There are 9 days between 21 February 2020 and 29 February 2020 (inclusive). Ben agrees to be furloughed from 25 March 2020. There are 7 days between 25 March 2020 and 31 March 2020 (inclusive).
The reference period for Ben is the last pay period ending on or before 19 March 2020.
Example of claiming for the same period last year
To calculate 80% of the wages from the corresponding calendar period in the tax year 2019 to 2020:
If your employee did not work for you in the corresponding calendar period in the tax year 2019 to 2020, you can only use the averaging method to calculate 80% of their wages.
Read guidance on how to work out 80% of the same month’s wages from the previous year.
P Ltd pays Carla on a weekly basis. Carla’s pay period starts on 23 March 2020 and ends on 29 March 2020. She was furloughed for the whole week. She was paid £350 for 23 March 2019 to 29 March 2019.
Carla had received a payment of earnings from P Ltd in tax year 2019-20 which was reported on a Real Time Information (RTI) Full Payment Submission (FPS) to HMRC on or before 19 March 2020.
80% of average monthly wages for the last tax year
You can use the calculator to help you work out how much you can claim, though there are some cases where this may not be suitable – it is your responsibility to check that the amount you are claiming for is correct.
Read guidance on how to work out 80% of average monthly wages for the last tax year.
Lex started work for Q Ltd in 2018 and was placed on furlough on 23 March 2020, receiving wages of £15,000 between 6 April 2019 and 22 March 2020 inclusive. There are 352 days between 6 April 2019 and 22 March 2020 (inclusive). Q Ltd is claiming for 23 March to 31 March 2020. There are 9 days between 23 March and 31 March 2020 (inclusive).
Lex had received a payment of earnings from Q Ltd in tax year 2019-20 which was reported on a Real Time Information (RTI) Full Payment Submission (FPS) to HMRC on or before 19 March 2020.
Charlie started work for R Ltd on 1 May 2019 and was placed on furlough on 23 March 2020, receiving wages of £15,000 between 1 May 2019 and 22 March 2020 inclusive. There are 327 days between 1 May 2019 and 22 March 2020 (inclusive). R Ltd is claiming for 23 March to 31 March 2020. There are 9 days between 23 March and 31 March 2020 (inclusive).
Charlie had received a payment of earnings from R Ltd in tax year 2019-20 which was reported on a Real Time Information (RTI) Full Payment Submission (FPS) to HMRC on or before 19 March 2020.
80% of your employee’s average earnings between the date their employment started and the day before they are furloughed
To work out 80% of your employee’s average wages between 6 April 2020 (or, if later, the date the employment started) and the day before they are furloughed on or after 1 November 2020:
Read guidance on how to work out 80% of your employee’s usual wages.
Oli started work for S Ltd on 3 August 2020 and was placed on furlough on 4 November 2020, receiving wages of £4,000 between 3 August 2020 and 3 November 2020 inclusive.
Oli will be paid for the pay period 15 November 2020 to 28 November 2020, and S Ltd is looking to make a flexible furlough claim for the same period (15 November 2020 to 28 November 2020).
There are 93 days between 3 August 2020 and 3 November 2020 (inclusive).
Oli had not received a payment of earnings from S Ltd in tax year 2019-20 which was reported on a Real Time Information (RTI) Full Payment Submission (FPS) to HMRC on or before 19 March 2020.
S Ltd works out 80% of Oli’s average wages between 6 April 2020 and the day before they are furloughed on or after 1 November 2020:
Minimum furlough pay for an employee who is flexibly furloughed
The minimum furlough pay is the lesser of either:
If your employee is flexibly furloughed the minimum furlough pay depends on their working and furloughed hours.
This is the minimum amount you must pay your employee for the time they are recorded as being on furlough. You can choose to pay more than this, but you do not have to.
If any of the furlough hours are taken as paid holiday or annual leave, you need to top up the pay for these hours to the employee’s full contracted rate.
Read guidance on how to calculate minimum furlough pay for an employee who is flexibly furloughed.
T Ltd’s employee Tamara has been furloughed continuously since 1 May 2020. Tamara is paid calendar monthly. From 1 July, she returns to work part-time for T Ltd and is furloughed for the rest of her usual hours. T Ltd makes a flexible furlough claim for 1 July 2020 to 31 July 2020.T Ltd has calculated that Tamara’s usual hours from 1 July 2020 to 31 July 2020 are 164. She actually works 80 hours and is therefore furloughed for the remaining 84 usual hours. T Ltd has calculated that 80% of Tamara’s usual wages is £1,800. The maximum wage amount is £2,500 as the claim is for a full month.
T Ltd calculates the minimum furlough pay:
T Ltd must pay Tamara £921.95 for the time they are on furlough. T Ltd can choose to pay her more than this for the time she is furloughed but does not have to. T Ltd will next need to calculate how much of the minimum furlough pay it can claim for.
How much of the minimum furlough pay you can claim for
For periods ending on or before 31 August 2020 you can claim a grant for the full amount of the minimum furlough pay.
For periods between 1 September 2020 and 31 October 2020 you will need to calculate the grant amount as follows:
For all other periods you can claim a grant for the full amount of the minimum furlough pay.
Read guidance on how to work out how much of the minimum furlough pay you can claim for.
U Ltd’s employee Ravi has been furloughed continuously since 15 April 2020. Ravi is paid calendar monthly. U Ltd makes a claim for 1 September 2020 to 30 September 2020. U Ltd has calculated that the minimum furlough pay for this period is £1,500, which is 80% of Ravi’s usual wages.
U Ltd calculates how much it can claim for Ravi’s furlough pay:
U Ltd can claim a grant of £1,312.50 towards Ravi’s wages. U Ltd must pay him the minimum furlough pay amount of £1,500, and can choose to pay more than this, but does not have to.
Working out how much you can claim for employer National Insurance contributions (NICs)
You should calculate and pay Class 1 employer National Insurance contributions in the normal way.
For periods ending on or before 31 July 2020, you can claim for Class 1 employer National Insurance contributions you have paid on the grant for your employee’s wages.
If you choose to top up your employees’ wages, you cannot claim for employer National Insurance contributions on the amount you have topped them up by.
For periods starting on or after 1 August 2020 you will not be able to claim a grant towards the employer Class 1 National Insurance contributions you have paid on the grant for your employees’ wages.
Read guidance on calculating the grant for employer NICs costs for an employee.
V Ltd makes a claim for Tash, who is paid weekly. The claim period is 6 July 2020 to 12 July 2020, which aligns with Tash’s pay period. V Ltd is claiming £500 towards her wages.
V Ltd first calculates the adjusted secondary NICs threshold.
Steps iv and v are not necessary because Tash is not flexibly furloughed part-time. The adjusted secondary NICs threshold is £169.
V Ltd next calculates the amount of the grant towards employer NICs costs.
V Ltd can claim £45.68 towards employer NICs costs.
If V Ltd claims the Employment Allowance, it must make sure not to claim too much from the scheme.
W Ltd makes a claim for Ibrahim, who is paid weekly. The claim period is 6 July 2020 to 12 July 2020, which aligns with his pay period. W Ltd is claiming £170 towards Ibrahim’s wages. He is furloughed for 10 of his 30 usual hours during the claim period.
W Ltd first calculates the adjusted secondary NICs threshold.
The adjusted secondary NICs threshold is £56.33
W Ltd next calculates the amount of the grant towards employer NICs costs.
W Ltd can claim £15.69 towards employer NICs costs.
If W Ltd claims the Employment Allowance, it must make sure not to claim too much from the scheme.
X Ltd makes a claim for Laura, who is paid weekly. The claim period is 29 July 2020 to 31 July 2020, which falls into the 29 July 2020 to 4 August 2020 pay period. X Ltd is claiming £160 towards Laura’s wages. She is furloughed for 10 of her 15 usual hours during the claim period.
X Ltd first calculates the adjusted secondary NICs threshold.
The adjusted secondary NICs threshold is £48.29.
X Ltd next calculates the amount of the grant towards employer NICs costs.
X Ltd can claim £15.42 towards employer NICs costs.
If X Ltd claims the Employment Allowance, it must make sure not to claim too much from the scheme.
Working out how much you can claim for employer’s pension contributions
You will still need to pay pension contributions on behalf of your furloughed employees. Up to 31 July 2020 you can claim for these up to the level of the mandatory employer contribution, even if it is not an auto-enrolment pension.
You cannot claim for any pension contributions:
You will need to work out how much you can claim for employer’s pension contributions.
Read guidance on calculating the grant for employer pension contributions for an employee (for claims from 1 July 2020 to 31 July 2020).
Y Ltd makes a claim for Aisha, who is paid weekly. The claim period is 6 July 2020 to 12 July 2020, which is also her pay period. Y Ltd is claiming £500 towards Aisha’s wages.
Y Ltd first calculates the adjusted Lower Limit of Qualifying Earnings (LLQE).
Steps 4 and 5 are not necessary because Aisha is not flexibly furloughed. The adjusted LLQE is £120.
Y Ltd next calculates the amount of the grant towards pension contributions.
Y Ltd can claim £11.40 towards employer pension contributions.
Z Ltd makes a claim for Bex, who is paid weekly. The claim period is 6 July to 12 July 2020, which is also her pay period. Z Ltd is claiming £170 towards its employee’s wages. Bex is furloughed for 10 of their 30 usual hours during the claim period.
Z Ltd first calculates the adjusted Lower Limit of Qualifying Earnings (LLQE).
The adjusted LLQE is £40.
Z Ltd next calculates the amount of the grant towards employer pension contributions.
Z Ltd can claim £3.90 towards employer pension contributions.
AB Ltd makes a claim for Simon, who is paid weekly. The claim period is 29 July 2020 to 31 July 2020, which falls into the 29 July 2020 to 4 August 2020 pay period. AB Ltd is claiming £160 towards Simon’s wages. He is furloughed for 10 of their 15 usual hours during the claim period.
AB Ltd first calculates the adjusted Lower Limit of Qualifying Earnings (LLQE).
The adjusted LLQE is £34.29.
AB Ltd next calculates the amount of the grant towards employer pension contributions.
AB Ltd can claim £3.77 towards employer pension contributions.
Amanda graduated from Brunel University, with a joint honours degree, achieving a BSC and BA degree in Leisure Management and Television and film studies. Amanda started her career in a customer service role before joining the hotel group Le Meridien as an Events coordinator, she was in the hotel industry for seven years and during her time won an award from a major international airline for her outstanding attitude and dedication to customer service, which she achieved while working for the Rezidor hotel group in the position of Airline Crew Manager. Amanda has over 20 years experience in customer relations and event management.
