Furlough calculations

Jeremy535897

theonlywayisup said:

Jeremy535897 said:

As Bill was furloughed under the original CJRS scheme, I think that the original method of calculation stands, and so Bill benefits from having earned £2,500 in January 2020, even though there is no chance he would have earned that in January 2021.

He wasn't furloughed under the original scheme, this is the first time he has been furloughed.  But I am of the same opinion, he earned 2.5 in Jan 20 therefore when furloughed for Jan 21 he will be paid 80% of the Jan 20 salary under furlough. 

So long as he was on the payroll at 19 March 2020, which from what you say he must have been, the answer is the same.

theonlywayisup

I got in touch with an HR company - I have now signed up as it will make life easier in the future.

They have given me the calculation that I take the higher of the salary for the same period last year, or average over 2019-2020. I pay any worked days / annual leave.  

On this situation I am to take his last years salary and calculate an average month; £2583.33 - then calculate 80% = £2066.67
He is furloughed from 5 January-31 January (27 calendar days) and not working for me during this time at all. 
Therefore 27/31*2066.67 = 1800.00 is the furlough pay (and claim).
His additional pay is the hours he did on 4 Jan and annual leave hours for 1 January.

The fact he worked many more hours last year compared to this year is immaterial in this calculation. 

Jeremy535897

theonlywayisup said:

I got in touch with an HR company - I have now signed up as it will make life easier in the future.

They have given me the calculation that I take the higher of the salary for the same period last year, or average over 2019-2020. I pay any worked days / annual leave.  

On this situation I am to take his last years salary and calculate an average month; £2583.33 - then calculate 80% = £2066.67
He is furloughed from 5 January-31 January (27 calendar days) and not working for me during this time at all. 
Therefore 27/31*2066.67 = 1800.00 is the furlough pay (and claim).
His additional pay is the hours he did on 4 Jan and annual leave hours for 1 January.

The fact he worked many more hours last year compared to this year is immaterial in this calculation. 

Yes. It works the other way for people who go from part time to full time, as threads on this forum show.

theonlywayisup

Jeremy535897 said:

theonlywayisup said:

I got in touch with an HR company - I have now signed up as it will make life easier in the future.

They have given me the calculation that I take the higher of the salary for the same period last year, or average over 2019-2020. I pay any worked days / annual leave.  

On this situation I am to take his last years salary and calculate an average month; £2583.33 - then calculate 80% = £2066.67
He is furloughed from 5 January-31 January (27 calendar days) and not working for me during this time at all. 
Therefore 27/31*2066.67 = 1800.00 is the furlough pay (and claim).
His additional pay is the hours he did on 4 Jan and annual leave hours for 1 January.

The fact he worked many more hours last year compared to this year is immaterial in this calculation. 

Yes. It works the other way for people who go from part time to full time, as threads on this forum show.

Yes I saw a thread earlier which was the reverse of this.  Such a shame some lose out.  Thankfully our chap will have his wage, our top up and the claim we lodge with HMRC will help in keeping our currently closed business going.