​The Coronavirus Job Retention Scheme has been extended to March 2021 

 

• From 1st July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. This now gives employers more flexibility to get their employees back to work. Any working hours that you agree with your employee must cover at least one week and be confirmed to the employee in writing. When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of 1 week. When doing the claim, you will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked. If your employees are unable to return to work, or you do not have any work for them, they can remain on furlough and you can still claim the grant for hours not worked under the existing rules of the scheme.

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From August, the CJRS grant will be slowly tapered, Watch our full webinar on the changes happening here:

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• In June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICs) and pension contributions for the hours the employee doesn’t work – employers will have to pay employees for the hours they work

• In August, the government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs that they would have incurred if the employee had not been furloughed

• In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500

• In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500

• The cap on the furlough grant will be proportional to the hours not worked.

•  This scheme has been designed to help employers to pay their staff. This scheme is also designed to ensure employees still have a job rather than being laid off or being made redundant. To be eligible for this scheme you need to have a payroll scheme in place and your employees need to be included on an RTI submission to HMRC previous to 19th March 2020. You will need to designate your employees as being Furloughed which you can find out more about here.​

• You should make sure to note that the scheme will close to new entrants from 30th June. From this period onwards, you will only be able to furlough employees that have been furloughed for a full three week period prior to 30th June.

• This means that the final date that you can furlough an employee for the first time will be 10th June for the current three week furlough period to be completed by 30th June.

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From November the CJRS grant has been extended and the amounts and eligibility criteria have changed.

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• The government will once again pay 80% of wages up to a cap of £2,500 but employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs that they would have incurred if the employee had not been furloughed

• Employees must have been on an employer's PAYE payroll by 23:59 30th October 2020 and also be included on an RTI submission notifying HMRC of payment for that employee - This means that employees not previously eligible for the scheme, may now be eligible

• This scheme will now run until 31st March 2021 but a review of the scheme will be done in January 2021