HMRC provides examples of calculations of what businesses can reclaim for flexibly furloughed employees in September and October

18 August 2020

HMRC has updated the guidance page which provides a variety of examples of the amounts that employers can reclaim for any employees that they place on flexible furlough, and the associated calculations. There are now detailed examples of calculations for both September and October, as the amount employers can claim drops to 70% initially and then 60% in October, before closing at the end of that month.

Since the start of August, employers have no longer been able to reclaim the costs associated with employer National Insurance (NI) and pension contributions for any hours that employees spend on furlough, and employers have had to pay this themselves.

The examples detail how much the employer must pay out to the employee in scenarios in both September and October, and also the figure that they may claim back through the Coronavirus Job Retention Scheme (CJRS).

When the scheme closes at the end of October, employers who bring employees who were previously on furlough back to work, and keep them in employment between November 2020 and January 2021, and pay them at least £520 per month on average during that time, will be eligible for a one-off payment of £1,000 for each eligible employee. This is referred to as the Job Retention Bonus. HMRC has reminded businesses that they need to ensure that their CJRS claims have been submitted correctly and any amendments made, if required, prior to claiming the Job Retention Bonus.


The information in this article is accurate at the time of publication. For all the latest information, news and resources on how the COVID-19 pandemic is affecting payroll professions, visit our Coronavirus hub.