COVID-19: updated HMRC guidance to address CJRS operation

HMRC made minor changes to various guidance notes relating to the Coronavirus Job Retention Scheme (CJRS) on 8 April 2021

Notable changes include new guidance on:

• How you identify whether an employee’s relevant reference day is 19 March 2020, 30 October 2020 or 2 March 2021.
• Worked examples on how to calculate usual working hours and 80% of wages for non-fixed rate employees with a relevant reference day of 2 March 2021. As with non-fixed rate employees with a relevant reference day of 30 October 2020, only the averaging method may be used where an employee has a relevant reference day of 2 March 2021.
• When using the averaging method to calculate average wages for non-fixed rate employees for claim periods starting on or after 1 May 2021, days spent on family-related statutory leave, “statutory sick pay leave” or “reduced rate paid leave” following the leave, and related wages, should not be taken into account. The exception to this rule is where an employee was on one of these types of leave throughout the entire period used to calculate their average wages. In this case, such days and related wages should be included.
• Multipliers for use when calculating grant amounts for July, August and September 2021, when the government contribution reduces. In addition, daily maximum wage amounts are provided for May 2021 to September 2021 inclusive.

The updated guidance also reference to TUPE transfers.  In the event of a TUPE transfer, employers should ensure that information needed for future claims under the CJRS is passed on to the new employer (including an employee’s relevant reference day and details of 80% of the employee’s wages).
A further Treasury Direction in respect of the extension of the CJRS from 1 May to 30 September 2021 is awaited.  We will provide more information when this is published by HMRC.