Overtime and the Coronavirus Job Retention Scheme – update

The guidance ‘Calculate how much you can claim using the Coronavirus Job Retention Scheme’ has been updated with 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.

If your fixed pay employee has worked overtime

If your fixed pay employee has worked enough overtime (in the tax year 2019 to 2020) to have a significant effect on the amount you need to claim, you should calculate 80% of their usual wages using the method for employees whose pay varies. 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 you are claiming 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.

PAYadvice.UK 12/8/2020

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