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HM Treasury has issued a futher Direction to HMRC clarifying several elements of the Coronavirus Job Retention Scheme (CJRS). We’ve included some of the most important here:

  • PAYE employees on the payroll who were employed on 19 March 2020 can be furloughed. The guidance had previously stated the date as 28 February 2020. This potentially brings many more employees within the scope of the CJRS
  • The CJRS is not limited to employees who you’d otherwise have made redundant. So you can use it for any employees who are furloughed “by reason of circumstances as a result of coronavirus or coronavirus disease”
  • You and the employee must have agreed in writing that the employee will stop doing any work for you.  The guidance only required notification but this Direction requires written agreement.  Check that you have obtained this
  • You must disregard anything which is not “regular salary or wages”  including any performance related bonus or discretionary payments