Furlough claims - pay increases

fee147

Hi everyone,

I seem to be hitting a brick wall for looking for guidance in respect of furlough claims and salary amounts to use.

In a nutshell - if an employee has had a pay increase at any point since March 2020 can the new salary be used for a furlough claim? The employee in question has been fully furloughed/flexi furloughed on and off, and is now back on flexi furlough.

I believe, for CJRS claims up to 30th October 2020, their pre 19th March salary was used for calculations. Going forward, does anyone have any idea if the higher (albeit still very low £1250 per month - struggling travel company) salary ca be used for new claims from 1st November? I believe the the pre 19th March salary still needs to be used to calculate UNLESS the employee is new to furlough, in which case the October payroll submissions are the benchmark for figures.

Any claim guidance just says "the guidance does not clarify this question"

Thank you - any input gratefully received.

Fee

leeGrant77

I have looked into this as i have a similar situation and my findings were that the salary needs to be based on the pre covid rate.
If you think about it any company director could increase their salaries from the nominal tax threshold rates up to something more attractive.
For clarity - im saying use the March salary

fee147

"If you think about it any company director could increase their salaries from the nominal tax threshold rates up to something more attractive. For clarity - im saying use the March salary "

Absolutely. I suspect a lot of small companies have upped salaries for this very reason so it makes sense for HMRC to advise using pre March salaries as the calculating amount.

Thank you