CJRS & BrightPay - Pay Periods crossing July & August 2021

Please Note: The Coronavirus Job Retention Scheme ended on 30 September 2021. Claims for September must be submitted on or before 14 October 2021. Any amendments must be made on or before 28 October 2021.

The Furlough Pay Calculator

Where a pay period straddles July & August 2021, BrightPay’s furlough pay calculator will automatically take into account the 70% and 60% apportionment required using a daily basis approach.

Example:

An employee’s weekly pay period runs from 30th July – 5th August 2021. Their regular wage is £500 and they are being fully furloughed.

Therefore 2 days of the pay period fall in July and 5 days in August.

1. Work out the daily pay rate = £500/ 7 days = £71.43

2. Perform the July calculation = £71.43 x 2 days = £142.86 x 70% = £100.00

3. Perform the August calculation = £71.43 x 5 days = £357.15 x 60% = £214.29

4. Total up the 2 amounts = £100 + £214.29 = 314.29*

* In some instances, users may see a few pence difference if comparing HMRC's calculations or a manual calculation with those calculated in BrightPay. This is because the published HMRC calculations are based on rounded amounts for making manual calculation easier. BrightPay uses a more direct and accurate algorithmic version of the calculation instead.

The Claim Report

Where a pay period straddles July & August 2021 (and thus 2 claims are required), BrightPay will apportion the pay period's gross pay into each claim period on a daily basis. Each day then has a relative weighting in line with the maximum reclaimable daily wage amounts as stipulated by HMRC. This is the only method that guarantees accuracy in all scenarios.

Example:

• Claim period is 30th July – 31st July
  
  
• Weekly pay period falling in claim period = 30th July – 5th August
  
  
• Employee is paid a reclaimable furlough pay amount of £314.28 in the pay period
  
  
• Therefore, there are 2 days in this claim period that will be accounted for.

In this instance, the pay period straddles the claim period, so we have to work out the percentage apportionment.

This is done using the ‘maximum reclaimable wage’ amounts for July (£2,187.50) and August (£1,875) as follows:

Likewise, the calculation being performed and the amount included in the August claim will be: