Thread by @hselftax

Guidance for #CJRS updated AGAIN 17 April.

Will read and comment by tomorrow morning. Watch this space

gov.uk/guidance/claim…

First key change (announced earlier today): scheme extended by 1 month so now runs from 1 March to 30 June

This presumably reflects the extension of the lockdown period announced yesterday.

Guidance on the detailed numbers has been separated onto a new page, which will include a calculator from 20 April

gov.uk/guidance/work-…

Back to main guidance.

Clearer warning about fraud (fair enough). But I hope HMRC will take a pragmatic approach to genuine mistakes - it’s complicated.

Clarification on employees made redundant or who stopped working for employer after 28 Feb, but no change to substance as far as I can see

Interaction of SSP/furlough is now clearer (although this may have been in last update). An employee currently off sick can be furloughed if it’s for business reasons.

An employee who becomes sick while on furlough must get at least SSP.

Also more clarity on fixed term contracts. Contracts can be renewed or extended during furlough period, but if the contract has already ended on or before 19 March it won’t qualify for the grant.

More information on agency and umbrella workers. Furlough agreement is between employer (agency or umbrella) and employee, although probably discuss with end client.

In practice may be rare for agency/umbrella to agree to furlough?

Now to the separate calculator guidance. NB the calculator itself won’t be live until 20 April.

This guidance brings together all the computational aspects, and now includes several worked examples.

No change to amounts to be included (regular wages and contractual amounts) or excluded (discretionary bonuses, commission etc) but now spelled out more clearly

Explicit statement that “grants cannot be used to substitute redundancy payments” and a statement that HMRC will continue to monitor businesses after the scheme has closed.

I can see future disputes over this - how likely was it that employees would be kept on/made redundant?

(That bit was in the main guidance not the calculator bit; sorry)

Watch out for holiday pay:
- if employees take holiday during furlough, this must be paid at FULL rate (ie need to top up furlough grant)
- if they don’t take holiday, entitlement will continue to accrue

And more on holidays, including Bank Holidays (of which of course we have already had 2 in April)

Several worked examples are included and are useful - eg steps to take, how to apportion for part periods/employees who started during the 19/20 year etc.

Employer’s NIC and pension contribution calculations are set out in much more detail.

Note in particular the interaction of NIC and EA - any EA claimed reduces the amount of NIC that can be included in the grant.

That’s the end of this update. Will comment separately - tomorrow - on outstanding queries identified by @ICAEW_Tax which I believe they have now put on their website.

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