Extension to the Coronavirus Job Retention Scheme (Furlough)
The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of September 2021.
The UK Government will continue to pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, up to the end of June 2021.
For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.
Employers will need to continue to pay their furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. This means, for periods between July and September, employers will need to fund the difference between this and the CJRS grants themselves. Employers can also top up wages above the 80% if they wish, but they are not required to do so.
Employers must also continue to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay from their own funds.
CJRS eligibility from May
For periods from 1 May 2021 onwards, employers will be able to claim for eligible employees who were on employers’ PAYE payrolls on 2 March 2021. This means they must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying HMRC of earnings for that employee.
You do not need to have benefitted from the scheme before to make a claim, as long as they meet the eligibility criteria.
For more information on the extension to the scheme and the support available, search ‘Job Retention Scheme’ on https://www.gov.uk/
February CJRS claims
You can now submit claims for periods in February. These must be made by Monday 15 March.
Employers can claim before, during or after they process their payroll. If they can, it’s best to make a claim once you’re sure of the exact number of hours your employees worked so you don’t have to amend your claim later.
Check if you and your employees are eligible and work out how much they can claim using HMRC CJRS calculator and examples, by searching ‘Job Retention Scheme’ on GOV.UK.
What you need to do now
- If you haven’t submitted your claim for January but believe that you have a reasonable excuse for missing the deadline of 15 February, check if you can make a late claim by searching ‘claim for wages’ on GOV.UK.
- Submit any claims for February no later than Monday 15 March.
- Keep records that support the amount of CJRS grants you claim, in case HMRC need to check them.
If you have any queries on the above don’t hesitate to contact us.