CJRS Rule Changes, Furlough Extensions & Other HMRC Quirks

Payroll in a Pandemic:
More Furlough Changes Introduced
The webinar will begin shortly…

Presenters
Rachel Hynes
Marketing Manager
at BrightPay
Karen Bennett
Chief Commercial Officer
at BrightPay

Today we will
discuss…
•CJRS Extension & Rule Changes
•CJRS Tools in BrightPay
•Key Lessons Learned in 2020
•How BrightPay Can Help
•Questions & Answers

Questions & Answers
Paul Byrne
Managing Director
at BrightPay
Victoria Clarke
Project Development & Training
Manager at BrightPay
Laura Murphy
Chief HR Officer
at BrightPay

Questions Recording Email
Handouts Resources

Payroll in a Pandemic:
More Furlough Changes Introduced

CJRS Timeline
CJRS V1
March
2020
June
2020
Minimum furlough period: 21 days
Government paid 80% of wages + employer
NI & Pension contributions
Not allowed to work while furloughed

CJRS V1
March
2020
June
2020
Minimum furlough period: 21 days
Government paid 80% of wages + employer
NI & Pension contributions
Not allowed to work while furloughed
CJRS V2
July
2020
October
2020
Only eligible if previously furloughed
Government contribution reduced every
month + employer contribution
Flexible furlough was introduced
CJRS Timeline

CJRS V2
July
2020
October
2020
Only eligible if previously furloughed
Government contribution reduced every
month + employer contribution
Flexible furlough was introduced
CJRS V3
November
2020
April 2021
Job Support Scheme postponed
Extended at the last minute until March 2021,
then April 2021
80% government subsidy reinstated
CJRS Timeline

CJRS V3
November
2020
April 2021
Job Support Scheme postponed
Extended at the last minute until March 2021,
then April 2021
80% government subsidy reinstated
NEW: CJRS Extension
May
2021
September
2021
New employee eligibility rules from May
Furlough scheme extended until the end of
September 2021
Government subsidy reduced from July
CJRS Timeline

CJRS Subsidy
Support
Employers required to pay employer NIC &
pension contributions
Employers are required to pay the
employee for the hours they work
Government will contribute 80% of wages
up to a cap of £2,500
Current contribution levels to continue
until 30 June 2021
November 2020 to June 2021

Employers are required to pay 10% of
wages to make up the 80%
(up to £2,500)
(up to £2187.50)
Employers must pay employer NIC &
employer pension contributions
July 2021
CJRS Subsidy
Support
July 2021 to September 2021

(up to £1,875)
Employers are required to pay 20% of
wages to make up 80% plus NIC & pension
contributions
August & September 2021
CJRS Subsidy
Support
July 2021 to September 2021
Employers can choose to top up employees’
wages above 80% / £2500

Employee
CJRS Eligibility
November 2020 to April 2021
An RTI must have been submitted between 20
March 2020 & 30 October 2020 with details of
the payment
You can claim CJRS for employees who were
made redundant after
23 September 2020 if re-employed
You can claim for employees who were
employed on 30 October 2020

Employee
CJRS Eligibility
May 2021 to September 2021
An RTI must have been submitted to HMRC
between 20 March 2020 and 2 March 2021
For period starting on or after 1 May 2021,
you can claim for employees employed on 2
March 2021
You do not need to have claimed previously
to be eligible to claim

CJRS Working
Agreements
Employers decide the hours and shift
patterns of employees
There are no minimum furlough periods –
can be any length of time
Employers must confirm furlough with
their employees in writing
Must keep records for 6 years – CJRS
agreement & furlough hours

If employee is fully furloughed
you do not need to work out usual hours
and furloughed hours
‘Usual hours’ calculations differ depending
on whether the employee works fixed or
variable hours
If employee is flexibly furloughed you need
to calculate usual hours, actual hours and
furloughed hours
Calculating
CJRS Claims

Employees with fixed hours: Based on
contractual hours in the last pay period on
or before 19 March 2020
‘Usual Hours’
Calculations
Eligible under original scheme
Hours worked in the corresponding
calendar period in previous tax year
Employees with variable hours:
Based on the higher of either:
Average number of hours worked in the
2019/20 tax year

Otherwise, employees who were
furloughed last year would only receive
80% of 80% of pay
‘Usual Hours’
Calculations
Eligible under original scheme
Exception to the corresponding calendar
period calculation
For March & April 2021 – must base the
usual hours calculation on March & April
2019, not 2020

Employees with fixed hours: Based on
contractual hours in the last pay period on
or before 30 October 2020
‘Usual Hours’
Calculations
Not eligible under original scheme
Employees with variable hours:
Based on the average number of hours
worked in the 2020/21 tax year up to the
start of furlough
No guidance yet for those first on the
payroll after 30 October 2020

Making a
CJRS Claim
BrightPay has a CJRS Claim Report to
ascertain amounts for claims
Minimum claim period is one week – except
first/last few days in a month
Claim periods must start and end within the
same calendar month
Pay periods that span two calendar months -
two separate claims

Making a
CJRS Claim
You can claim before, during or after you
process your payroll
Need to know the exact number of hours of
flexi furloughed employees
Claims can be made up to 14 days before
your claim period end date
You cannot make more than one claim
during a claim period

Claim for furlough
days in:
Claims must be
submitted by:
March 2021 14 April 2021
April 2021 14 May 2021
May 2021 14 June 2021
June 2021 14 July 2021
July 2021 16 August 2021
August 2021 14 September 2021
September 2021 14 October 2021
Claim Deadlines

Your partner or another close relative died shortly before
the claim deadline
Service issues with HMRC online services prevented you
from making your claim
You had an unexpected stay in hospital that prevented
you from dealing with your claim
A fire, flood or theft prevented you them from making
your claim
You had a serious or life-threatening illness which
prevented you from making your claim
Postal delays that you could not have predicted
prevented you from making your claim
A period of self-isolation prevented you from making
your claim
Delays related to a disability you have prevented you
from making your claim
Your computer or software failed just before or while you
were preparing your online claim
An HMRC error prevented you from making your claim
Reasonable Excuses

You can repay overclaims in your next claim
without contacting HMRC
Amending
CJRS Claims
Where you have claimed too much
If you do not plan to submit further claims,
you can let HMRC know and make a
repayment online
Notify & repay HMRC by the later of 90 days
from receiving the money / when you
became no longer entitled

You need to amend the claim within 28
calendar days after the month the claim
relates to
Amending
CJRS Claims
Where you have claimed too little
Exception – where the 28th day falls on a
weekend or bank holiday
Deadline for amended claims for February is
29th March, unless you have a reasonable
excuse

February: Publication also included claim
values within a banded range
Employer Compliance
Details of CJRS claims are now being
published monthly by HMRC
List does not include those who made an
application to have name withheld
January: Published employers names who
made a claim in December

Employer
Compliance
Employee’s online Personal Tax Account now
includes CJRS claims made on their behalf
HMRC will take action against those who
have taken unfair advantage of the furlough
scheme
A massive £3.5 billion of furlough claims are
estimated to be fraudulent

CJRS:
Hot Topics
Minimum Wage Rates
Furloughed hours – staff can be paid 80%,
even if less than minimum wage
Working hours (including training) must be
topped up by the employer to ensure
minimum wage is met
Employees are only entitled to NMW and
NLW for hours worked

CJRS:
Hot Topics
Bank Holidays & Annual Leave
Holiday hours count as furloughed hours, not
working hours
Continue to accrue holidays and can take
holidays whilst on furlough
For bank holidays that fall during furlough,
the employee is entitled to their normal full
pay or a day in lieu

CJRS:
Hot Topics
When the CJRS ends…
The Job Retention Bonus of £1,000 has also
been shelved
It’s unlikely that further Government
incentives will be introduced
With the extension of the CJRS, it is unlikely
that the Job Support Scheme will come into
force

Webinar
Agenda
•CJRS Extension & Rule Changes
•CJRS Tools in BrightPay
•Key Lessons Learned in 2020
•How BrightPay Can Help
•Questions & Answers

Key Lessons Learned
Importance of
Remote Access
?
?
?

Importance of Remote
Access
Payroll processing is possible by 10 users
or from 10 different locations
All BrightPay licences can be installed on
up to 10 PCs
New ‘version check’ and ‘other users check’
to prevent conflicting copies
It is important to be able to access your
payroll data from home

Key Lessons Learned
Importance of
Remote Access
?
Importance of
Reliable Software
?

Importance of
Reliable Software
98.6% rating for BrightPay’s overall
handling of COVID-19 – support, product
upgrades, free webinars
Winner of COVID-19 Hero (Suppliers) at
Accounting Excellence Awards
BrightPay introduced furlough functionality
& many upgrades to help users with
scheme changes

Key Lessons Learned
Importance of
Remote Access
Importance of
Payroll Backups
Importance of
Reliable Software
?

Importance of
Payroll Backups
An additional layer of protection to
safeguard your payroll data
You can easily restore your data should
the unforeseen happen
Take manual backups (snapshots) if not
using BrightPay Connect
With BrightPay Connect you can backup
your payroll data instantly

Key Lessons Learned
Importance of
Remote Access
Importance of
Payroll Backups
Importance of
Reliable Software
Importance of
Automation

Importance of
Automation
Eliminate admin-heavy tasks to make up
for time spent learning
It’s now more important than ever before to
automate payroll tasks
How much time do you spend on
administrative payroll tasks?
Payroll processors have had an added
workload this year

How to Automate Payroll
Batch Payroll Processing
Client Payroll Entry & Approval
Employee Self-Service
Integrated Payroll & HR Processes
Furlough Support
Accounting Software Integration
Pay Employees via BrightPay
Improved Multi-User Features
NEW
NEW
NEW

Standard
For individual employers.
Bureau
For payroll service providers.
One employer
Unlimited employees
For large employers
£199
One employer
Up to 25 employees
For medium-sized employers
£149
One employer
Up to 10 employees
For small employers
£99
Unlimited employers
Unlimited employees
For large payroll bureaus
£499
Up to 25 employers
Unlimited employees
For medium-sized bureaus
£399
Up to 10 employers
Unlimited employees
For small payroll bureaus
£249
NOTE: Prices are per tax year and exclude VAT.

100 employees £27.70 per month
1 employee £0.50 per month
Example Monthly Bills
Monthly subscription based on number of employees

CJRS Rule Changes, Furlough Extensions & Other HMRC Quirks

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CJRS Rule Changes, Furlough Extensions & Other HMRC Quirks