**WORK OUT THE MAXIMUM WAGE AMOUNT YOU CAN CLAIM**

The maximum wage amount you can claim is £2,500 a month, or £576.92 a week, plus any National Insurance and pension contributions you can claim for.

If the length of time you’re claiming for is not one week or one month, you’ll need to use the daily maximum wage amounts to work out the maximum amount you can claim for each employee.

To work out the maximum amount you can claim, multiply the daily maximum wage amount by the number of days your employee is furloughed for in your claim

Month | Daily maxiumum wage amount |

March 2020 | £80.65 per day |

April 2020 | £83.34 per day |

May 2020 | £80.65 per day |

If your employee is furloughed over two calendar months, you’ll need to calculate the maximum amount for each calendar month and add them together.

If you’re claiming for multiple pay periods in one claim, you can calculate the total maximum using a mixture of:

the daily maximum wage amount

the weekly maximum wage amount

the monthly maximum wage amount

**Example of working out the maximum wage amount for part of a pay period**

A Limited company pays all of their employees weekly on each Friday and puts all of their employees on furlough on Wednesday 8 April 2020.

A Ltd will need to calculate the grant using the daily calculation for the first pay period which ends on Friday 10 April 2020. This is £83.34 multiplied by 3 days, which is £250.02.

For the next pay period, 11 April 2020 to 17 April 2020, the maximum amount is £576.92 because the pay period is a whole week, and the employee is furloughed on each day.

A Ltd makes a claim for 8 April 2020 to 17 April2020. The maximum wage amount that they can claim for is the two amounts added, £826.94.

**Work out 80% of your employee’s usual wage**

You must use these calculations to work out how much you can claim.

A calculator will be available from 20 April 2020 to assist you in calculating how much you can claim.

The way you should work out 80% of your employee’s usual wages is different depending on the way they’re paid. You must check what you can include as wages first.

Choose the calculation you think best fits the way your employee is paid. For example, if you pay your employee a regular salary, use the calculation for fixed pay amounts. HMRC will not decline or seek repayment of any grant based solely on the particular choice of pay calculation, as long as a reasonable choice of approach is made.

You must pay the full amount of the grant to your employee.

Where a claim covers multiple pay periods, this calculation should be done for each and then added together.

**WORK OUT 80% OF WAGES FOR FIXED RATE FULL OR PART TIME EMPLOYEES ON A SALARY**

Where a claim covers multiple pay periods, this calculation should be done for each and then added together.

Claim for the 80% of the employee’s wages, from their last pay period before 19 March 2020.

If you have already calculated your claim based on the employee’s wages as of 28 February 2020, and this differs from their wages in their last pay period prior to 19 March 2020, you can choose to still use this calculation for your first claim.

To work out 80% of your employee’s wage:

Start with your employee’s wages, which is their last pay period before 19 March – if you’re claiming for a full pay period, skip to step 4.

Divide by the total number of days in the pay period.

Multiply by the number of furlough days in the pay period.

Multiply by 80%.

**Example**

Worker started work for B Ltd in 1997 and is paid a regular monthly salary on the last day of each month. The worker agreed to be placed on furlough from 23 March 2020. The worker was paid £2,400 for the last full monthly pay period before 19 March 2020. There are 9 days between 23 March and 31 March.

Start with £2,400 (employee’s wages)

Divide by 31 (the total number of days in March)

Multiply by 9 (the number of furlough days in March)

Multiply by 80% – which is £557.42

**IF YOUR EMPLOYEE HAS NOT BEEN PAID FOR A FULL PAY PERIOD UP TO 19 MARCH 2020**

If your employee has not been paid for a full pay period up to 19 March 2020, you’ll need to work out what their usual wages are and then calculate 80%. To do this:

Start with amount they’ve been paid in their last pay period.

Divide by the number of days in their last pay period (including non-working days).

Multiply by the number of days that would have been in that pay period.

Divide by the total number of days in this pay period.

Multiply by the number of furlough days in this pay period.

Multiply by 80%.

**Example**

Employee started work for B Ltd on 21 February 2020 and is paid on the last day of each month. The employee had not had a full pay period up to 19 March 2020, but was paid £700 as a pro-rata of their salary on 29 February 2020. There are 9 days between 21 February and 29 February. The employee agrees to be furloughed from 25 March 2020. There are 7 days between 25 March and 31 March.

Start with £700 (the amount they were paid in their last pay period)

Divide by 9 (the number of days in their last pay period – including non-working days)

Multiply by 29 (days in February)

Divide by 31 (the total number of days in the March pay period)

Multiply by 7 (the number of furlough days in the March pay period)

Multiply by 80% – which is £509.32

**EMPLOYEES WHOSE PAY VARIES AND WERE EMPLOYED FROM 6 APRIL 2019**

If the employee has been employed continuously from the start of the 2019 to 2020 tax year, you can claim the highest of either:

80% of the same month’s wages from the previous year (up to a maximum of £2,500 a month)

80% of the average monthly wages for the 2019 to 2020 tax year (up to a maximum of £2,500 a month)

To calculate 80% of the same month’s wages from the previous year:

Start with the amount they earned in the same period last year.

Divide by the total number of days in this pay period – including non-working days.

Multiply by the number of furlough days in this pay period.

Multiply by 80%.

**Example of claiming for the same period last year**

A Ltd pays an employee on a weekly basis. The employee’s pay period starts on 23 March 2020 and ends on 29 March 2020. The employee was paid £350 for 23 March 2019 to 29 March 2019. The employee was furloughed for the whole week.

Start with £350 (the amount they earned in the same period last year)

Divide by 7 (the total number of days in this pay period)

Multiply by 7 (the number of furlough days in this pay period)

Multiply by 80% – this is £280

To work out 80% of the average monthly wages for the last tax year:

Start with the amount they earned in the tax year up to the day before they were furloughed.

Divide it by the number of days from the start of the tax year – including non-working days (up to the day before they were furloughed, or 5 April 2020 – whichever is earlier).

Multiply by the number of furlough days in this pay period.

Multiply by 80%.

**Example of working out 80% of average monthly wages for the last tax year**

Worker started work for A Ltd in 2010 and was placed on furlough on 23 March 2020, earning £15,000 between 6 April 2019 and 22 March 2020 inclusive. There are 353 days between 6 April 2019 and 22 March 2020. A Ltd is claiming for 23 March to 31 March 2020. There are 9 days between 23 March and 31 March.

Start with £15,000 (the amount they earned in the tax year up to the day before they were furloughed)

Divide it by 353 (the number of days from the start the tax year, up to the day before they were furloughed)

Multiply by 9 (the number of furlough days in this pay period)

Multiply by 80% – this is £305.95

**EMPLOYEES WHOSE PAY VARIES AND WHO STARTED EMPLOYMENT AFTER 6 APRIL 2019**

If the employee started their employment after 6 April 2019, claim for 80% of their average monthly wages since they started work until the date they are furloughed, up to a maximum of £2500 per month.

To work out 80% of your employee’s average monthly earnings:

Start with the amount they earned in the tax year up to the day before they were furloughed.

Divide it by the number of days they’ve been employed since the start of the tax year – including non-working days (up to the day before they were furloughed or 5 April 2020 – whichever is earlier).

Multiply by the number of furlough days in this pay period.

Multiply by 80%.

Every day or period after the employee commenced employment with the employer is counted in making this calculation. This includes days when no work was undertaken.

**Example of working out 80% of average monthly wages for the last tax year**

Employee started work for A Ltd in 1 May 2019 and was placed on furlough on 23 March 2020, earning £15,000 between 1 May 2019 and 22 March 2020 inclusive. There are 327 days between 1 May 2019 and 22 March 2020. A Ltd is claiming for 23 March to 31 March 2020. There are 9 days between 23 March and 31 March.

Start with £15,000 (the amount they earned in the tax year up to the day before they were furloughed)

Divide it by 327 (the number of days from the start the tax year, up to the day before they were furloughed)

Multiply by 9 (the number of furlough days in this pay period)

Multiply by 80% – this is £330.28

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