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Sam
Sam, Accountant
Category: Tax
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I want to calculate how much furlough i have to pay to an

Customer Question

i want to calculate how much furlough i have to pay to an employee who was furloughed since December 19 2021. She's been on full furlough since December 19 2021 and our accountant's calculations show that she was entitled to furlough pay in December, January, February, March and April. She returned to work on May 18th and our accountant is saying she is not entitled to furlough pay for the period May 1st to May 17th because she has worked 105 hours from May 18th to May 31st. The employee has gone to the Citizens Advice Bureau and they told her she is entitled to furlough pay for the period from May 1 to May 17 which our accountant is saying is not correct. So i want an accountant to do a calculation and let me know if our accountant is right or wrong. thanks
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Customer: i want an accountant to calculate how much furlough i have to pay to an employee who was furloughed since December 19 2021. She's been on full furlough since December 19 2021 and our accountant's calculations show that she was entitled to furlough pay in December, January, February, March and April. She returned to work on May 18th and our accountant is saying she is not entitled to furlough pay for the period May 1st to May 17th because she has worked 105 hours from May 18th to May 31st. The employee has gone to the Citizens Advice Bureau and they told her she is entitled to furlough pay for the period from May 1 to May 17 which our accountant is saying is not correct. So i want an accountant to do a calculation and let me know if our accountant is right or wrong. thanks
Submitted: 9 days ago.
Category: Tax
Expert:  Sam replied 9 days ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Customer: replied 9 days ago.
Thank you Sam. Do you want the employee (Kristina's) start date? It's March 3rd 2020 and she was furlough from that period until we reopened our restaurant in July 2020 and was then re-furloughed for the second lockdown in November, and then furloughed a third time for the third lockdown from December 19th 2020 until we reopened our restaurant on May 17th 2020. Thank you.
Expert:  Sam replied 9 days ago.

Hi

you can do this yourself here to back this up

https://www.gov.uk/guidance/calculate-how-much-you-can-claim-using-the-coronavirus-job-retention-scheme

But what hours would she normally work as you say she HAS been working from 1st may to 18th May so I agree at face value she is entitled to nothing or she didn't work then but returned on 18th may to May 32sst but what hours again would she normally have worked ?

Thanks

Sam

Customer: replied 9 days ago.
HI Sam, no she has not been working from May 1st to May 16th. We were closed. She only started working on May 17th. So she was on furlough for the period May 1 to May 16th.
Expert:  Sam replied 9 days ago.

Ok

So what is she normally paid ?

Thanks

Sam

Customer: replied 9 days ago.
she is not on a fixed monthly salary, she is paid per hour based on the total hours she works during a month. These hours can vary depending on how busy we are, they are between 100 hours per month up to 220 hours per month.
Customer: replied 9 days ago.
from our reopening date on May 17th to May 31st we were super busy and we were short of staff so she worked 105 hours during those two weeks. But she did not work any hours from May 1st to May 16th which is her furlough period.
Expert:  Sam replied 9 days ago.

Hi

Then its impossible to work out as she did earn money for the second half of May so whose to say that would not be equal to a whole months normal salary

At what rate has the claim been made for her previously ?

Thanks

Sam

Customer: replied 9 days ago.
For January 1st to January 31st she was paid 943.12 as furlough
Customer: replied 9 days ago.
in february she was paid £487.61, in March she was paid 487.61, in april she was paid 684.69
Customer: replied 9 days ago.
in all these four months she was on full furlough
Expert:  Sam replied 9 days ago.

Hi

So based on that she is due the same rate so in essence half of that 15/31 days plus her earned for the latter part of the month

Thanks

Sam

Customer: replied 9 days ago.
when you say the same rate, what is the rate? she had different pay totals for each of January, February, March and April. So she is due half of which month? January, February, March or April 2021?
Expert:  Sam replied 9 days ago.

She should not have different totals they should have been the same ??????? Based on the figures originally used

I cannot answer that as I dont have her figures to hand you need to go back to the accountant and tell them not only are they wrong explain why she has had a diffeent pay amoutn each months when the figures used should have been the same based on the set hours calculated intially for the irregular hour position

Thanks

Sam

Customer: replied 9 days ago.
ok thank you will do.
Expert:  Sam replied 9 days ago.

HI

or maybe get a new payroll provider who does know what they are doing

Thanks

Sam