Employers will need to make a claim for their grant for their furloughed workers through HMRC's Coronavirus Job Retention Scheme online service.
BrightPay includes a CJRS Claim Report which can be used to ascertain the amounts needed for input into HMRC's online service.
From November 2020, claims must be submitted via HMRC’s online claim portal by the 14th of the following month.
Please note: before proceeding, please read our Notes of Importance when using the Claim Report, which can be accessed here.
1) To access this report, go to Employees > CJRS Claim Report:
2) Complete the first screen accordingly:
a) enter at least a Company Registration Number, a Self Assessment UTR or Corporation Tax Reference, where applicable.
b) enter the start and end date of the Claim Period you are claiming for.
c) Select a default furlough type (full or flexible) - should the furlough type differ for employees you are claiming for, this can be changed in a later step.
d) enter a default furlough start date - should furlough start dates differ for employees you are claiming for, this date can be changed in a later step.
e) enter a default furlough end date, if known - this is an optional field and can be left blank if not known.
f) Select a default option for determining the furlough pay for each employee. Should a different method have been used for different employees, this can be changed at a later step.
h) Click Continue
3) On the next screen, select the employees who have received furlough pay and for whom you wish to claim for, followed by Continue:
4a) For each employee, now confirm their Furlough Type. For any employee for whom the default type doesn't apply, change accordingly. Use the Edit button to copy furlough type settings to other employees.
b) For each employee, confirm their dates of furlough leave. For any employee for whom the default dates don't apply, amend their dates accordingly using the drop down. Use the Edit button to copy furlough date settings to other employees.
c) Where you have chosen 'Flexible' as the furlough type for an employee, you must now enter their usual hours and their actual hours worked in the claim period in the fields provided.
This data is required in order to accurately calculate the employee's reclaimable employer NIC and employer pension amounts, where applicable.
Important note: where an employee's furlough type has been set to 'flexible', but no hours are subsequently entered by the user, the software will base its calculation on the assumption that the employee is 'fully furloughed'.
d) For each employee, confirm the method by which their furlough pay is to be determined. Should the default setting you have chosen in Step 2 not apply to a particular employee, click the drop down menu and choose the applicable method from the listing. Use the Edit button to apply a setting to other employees.
e) Once this screen is complete, click Continue
6) On the final screen, enter any additional information that HMRC require when making a claim.
7) If you have more than 100 employees, a CSV file must be uploaded into HMRC's online service containing the details of your claim.
8) Once your Claim Report is completed, simply close out of the utility.
a) How amounts are calculated
b) Pay periods which straddle claim periods
For a pay period covered by multiple claim periods, we apportion the pay period's gross pay into each claim period on a daily basis, where each day has a relative weighting in line with the maximum daily wage amounts as stipulated by HMRC. This is the only method that guarantees accuracy in all scenarios.
Please click here for a working example.
In some instances, users may see a few pence difference if comparing HMRC's calculations with those calculated in BrightPay.
This is because the published HMRC calculations are based on rounded amounts for making manual calculation easier. BrightPay uses a more direct and accurate algorithmic version of the calculation instead (similar to those used in NIC calculations) which can result in the few pence difference.
d) Pay periods which cross 2 tax year versions of BrightPay
Where pay periods cross over 2 tax year versions of BrightPay, we would like to bring to your attention the following scenario where BrightPay will unfortunately be unable to produce a CJRS Claim Report and in turn automatically ascertain reclaimable amounts for you.
This is due to the nature of how BrightPay is programmed, in that 21-22 BrightPay will install as a separate program to 20-21 BrightPay.
Scenario: your pay period commences in March and has a pay date falling after 6th April 2021
The pay data for this pay period will be processed in 21-22 BrightPay. As the pay period however crosses 2 calendar months, 2 claims are required to reclaim the furlough pay – a March claim to cover the dates falling in March and an April claim for the dates falling in April.
In this instance, users will thus be required to manually calculate the reclaimable March furlough pay element and process in the normal manner through HMRC's claim portal.
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