COVID-19: New guidance for furlough claims submitted after 14 September

HMRC have recently updated their guidance on how to calculate usual hours and furlough pay when employees return to their normal working hours during a claim period.
HMRC have added the following paragraph to their guidance:

“Calculating the number of working and furloughed hours for an employee that comes off furlough or flexible furlough partway through a claim period:

If your employee stops being furloughed or flexibly furloughed partway through a claim period, when calculating the number of furloughed hours you can claim for, make sure you:
  • only calculate the employee’s usual hours up to the last day of furlough, instead of to the end of the claim period
  • do not include any working hours after the last day of furlough
This applies even if your claim period includes days after the employee’s last day of furlough (for example, because you’re claiming for multiple employees and some of them stay on furlough).

You do not need to amend any previous claims submitted prior to 14 September 2020 for these employees. You should use this calculation for any claims from 14 September 2020, for an employee who stops being furloughed or flexibly furloughed partway through a claim period."

You can find an example of how to calculate the minimum furlough pay for an employee who is flexibly furloughed here

Using the HMRC guidance to work out the furlough pay in the period you would:
  1. Calculate the normalised hours for the period 1 to 12 July – 40 hours divided by 7 days in the working week and multiplied by 12.  This equals 69 hours rounded up.
  2. Calculate the hours worked between 1 and 12 July – assume this is 20 hours, in reality you will have details of the hours worked.
  3. Calculate the furloughed hours between 1 and 12 July – this is the difference between normalised and worked hours – This equals 49 hours.
  4. To calculate the furlough pay in the period you multiply 80% of earnings calculated in example 3.3 by the furlough hours divided by the normalised hours in the period.  This equals £619.35 x 49/69=£439.83.
 Find out more on the HMRC website
If you have any queries or need further assistance please contact your local Moore adviser. 

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