Extended CJRS guidance updated
13 November 2020
HMRC has updated its guidance on which employees can be placed on furlough, to correct a previous error, and to provide further clarity on the topic of the eligibility criteria for employees who have been made redundant, and subsequently re-employed.
Initially, the information provided suggested that, for claim periods after 1 November 2020, a new employer could claim in respect of the employees of a previous business transferred where TUPE or PAYE business succession rules applied to the change in ownership, where they had been transferred from their old employer to their new employer on or before 1 September 2020. This was incorrect and has since been amended to reflect the fact that employees transferred from their old employer to their new employer on or after 1 September 2020 will, in fact, be eligible for the scheme. Employees also have to have been employed by either their old or new employer on 30 October 2020, and been included on a PAYE Real Time Information (RTI) submission to HMRC by their old or new employer between 20 March 2020 and 30 October 2020.
The guidance also provides additional guidance on employees who were made redundant and then re-employed. For claim periods after 1 November 2020, if employees were made redundant or stopped working for their employer on or after 23 September 2020, they can be re-employed and placed on furlough. This is applicable where the employee was employed by their employer on 23 September 2020 and were included on a PAYE RTI submission to HMRC between the dates of 20 March 2020 and 30 October 2020.
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.