14th August 2020

The effect of overtime when calculating 80% of wages for CJRS

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HMRC has updated its guidance Calculate how much you can claim using the Coronavirus Job Retention Scheme to include a new section on how to calculate a claim for fixed pay employees who have worked enough overtime (in the tax year 2019 to 2020) to have a significant impact on the amount to claim.

Examples of situations where overtime could have a significant effect on the claim amount include where the employee worked overtime:

  • in the last pay period ending on or before 19 March 2020
  • in the corresponding calendar period to the period being claimed for a lot, or often, in the tax year 2019 to 2020.

You do not need to amend any previous claims, however, if these circumstances apply you should use the calculation for employees whose pay varies for any future claims.

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