Furlough Cost Calculator UK
Calculate historical CJRS furlough costs — useful for tax records and payroll reconciliation.
Calculate Historical Furlough Costs
Furlough Scheme — Historical Reference
The Coronavirus Job Retention Scheme (CJRS) ran from March 2020 to 30 September 2021. At peak, the government covered 80% of furloughed employees' wages (up to £2,500/month). From July 2021, employers began contributing 10%, rising to 20% in August/September 2021 as the scheme wound down.
The total cost to the UK government was approximately £70 billion. Over 11 million jobs were furloughed at peak. Employers must retain CJRS records for 6 years. HMRC may audit claims made under the scheme. If overclaims were made, employers should repay voluntarily to avoid penalties.
Frequently Asked Questions
What was the furlough scheme?
The Coronavirus Job Retention Scheme (CJRS) allowed employers to place workers on furlough and claim government grants covering up to 80% of wages (capped at £2,500/month) from March 2020 to September 2021.
When did the furlough scheme end?
The CJRS ended on 30 September 2021. The last claims could be submitted by 14 October 2021.
How much did furlough pay?
80% of reference salary (capped at £2,500/month). From July 2021 the government contribution reduced: July 70% govt, August/September 60% govt, with employers topping up to 80% minimum.
Do I need to keep furlough records?
Yes — HMRC requires you to keep CJRS records for 6 years, including the amount claimed, details of employees furloughed, dates of furlough and calculations.
What if I overclaimed furlough?
Voluntarily repay via the HMRC portal. HMRC may impose penalties of up to 100% of overclaimed amounts if discovered through audit. Deliberate fraud carries criminal prosecution risk.
Can I still be audited for furlough claims?
Yes — HMRC has 4 years to investigate furlough claims from the date of payment (or 20 years for fraud). If you believe you overclaimed, consider making a voluntary disclosure.
Were furlough grants taxable for employers?
Yes — CJRS grants are taxable as employment income support subsidies. They were included in taxable profits for corporation tax purposes.
What was flexible furlough?
From 1 July 2020, employers could bring furloughed employees back part-time and claim CJRS for the hours not worked. Employees could work and be furloughed in the same pay period.
How was reference pay calculated for furlough?
For employees on fixed salary: average monthly pay in the 2019/20 tax year or last pay before furlough. For variable pay workers: the higher of: average pay in 2019/20 or same calendar month in 2019.
Did furlough affect holiday entitlement?
Furloughed workers continued to accrue statutory holiday. They could take holiday during furlough at full contractual pay, with the employer funding the top-up above the furlough cap.
Was furlough pay subject to NI and pension?
In the early months (March–July 2020) the government also covered employer NI and pension contributions. From August 2020 employers paid all NI and pensions on top of furlough grants.
Can furlough costs be used to claim R&D tax credits?
No — furloughed employees were not working on R&D activities. HMRC confirmed furlough grants do not count as qualifying R&D expenditure.