We would love to hear your thoughts, concerns or problems with anything so we can improve!
Feedback Submitted
Thank you for submitting your feedback
JRS - Calculating the Claim
04 May 2020 Julia Ascott, Employment Taxes Specialist
We have been hearing from a number of advisors warning that the calculation of the claim under the Job Retention Scheme (JRS) is not straight-forward for most employers. Care should be taken and BUFDG advise, given the uncertainty surrounding the eligibility of the HE sector, that positions are considered by all stakeholders, decisions are documented and evidence retained to support the actions taken.
Common issues in calculating the JRS claim:
Only one claim can be made per month - this will cause additional calculations for those employers with multiple pay periods within the month, e.g. monthly, weekly, etc. Calculations may need to be apportioned according to the number of days in the pay period in order to align the pay periods
Once a claim has been made, it cannot be amended. It is therefore recommended that the calculations are thoroughly checked internally against the different rules for each grant aspect (e.g. pay, NIC, pension). Most large professional advisors have a JRS calculator which can be used to check your calculations are correct or calculate the claim based on the information provided. For example, PWC have this published this flyer on their offering and BDO's Covid-19 hub can be found here with links to their offering. HMRC's own calculator can be found here
Claims are based on employees reference pay - which will depend on whether they are on fixed or variable pay, but also requires adjustments for discretionary payments.
The pay period to be used is not the latest pay month data from your payroll software. For those on fixed pay, it is based on the last RTI submission on/before 19th March. For those on variable pay, it will depend on the level of earnings either in the same period for the previous tax year, or the average pay in the 19/20 tax year
Pension claims are calculated in a different way as employers must deduct off non-qualifying earnings (first £520) and then only claim 3% back regardless of the pension paid by the employer
The claim must be on the employees pay AFTER any salary sacrifice but before tax. All of the grant provided by HMRC must be paid fully to the employee as cash, no part of it can be 'sacrificed' in order to meet the cost of a benefit.
This site uses cookies and other tracking technologies to assist with navigation and your ability to provide feedback, analyse your use of the site and services and assist with our member communication efforts.
Privacy Policy.
Accept cookies
Cookie Settings
Your Privacy
When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalised web experience.
Because we respect your right to privacy, you can choose not to allow some types of cookies. Look at the cookies we use below to help you make an informed decision. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
Strictly Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms.
You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information
Cookies Used
Microsoft - ASP.NET_SessionId – keeps you logged in for a set period of time, so that you don’t have to keep logging in
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site.
All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance