Following on from our recent
Business Update Newsletter
, we would like to update you further on the extension of the Coronavirus Job Retention Scheme.
On 5 November 2020 the Chancellor, Rishi Sunak, announced that the Coronavirus Job Retention Scheme (CJRS) will be extended to the end of March.
Extended CJRS – government support
The extended CJRS applies to all of the UK. The scheme follows the flexibility of the CJRS and so can be used for employees for any work pattern including full-time furlough.
Employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. Employees can top up employee wages if they wish. Employees will be paid for worked hours by their employer on the terms in their employment contract.
Under the scheme employers can claim for the salary received by the employee for hours not worked. They will be able to claim the full 80% until the end of January, but the Government will review the position in January and may reduce the amount that can be reclaimed from then on.
Employers will need to cover the full employer Class 1 National Insurance contributions and employer pension contributions.
There is no gap in support between the previously announced end-date of the CJRS and the extended CJRS.
Extended CJRS – eligibility
All employers with a UK bank account and a UK PAYE scheme can make a claim. Neither the employer nor the employee needs to have previously claimed or have been claimed for under the CJRS to make a claim under the extended CJRS.
An employer can claim for employees who were employed and on their PAYE payroll on 30 October 2020. Furlough time can be back-dated to 1 November, if for example an employee’s hours were being reduced under the Job Support Scheme.
In addition, employees who have recently been made redundant or stopped working for the employer can be re-employed. The employees must have been employed and on the payroll on 23 September.
When can a claim be made?
The extended CJRS will operate as the previous scheme did, with businesses being able to claim either shortly before, during or after running payroll. Claims can be made from 8am Wednesday 11 November.
Claims for each month must be submitted by day 14 of the following month, so claims for November must be submitted to HMRC by no later than 14 December 2020.
HMRC guidance is still being developed. Below are some links to guidance which will be updated (and continue to be updated) in the next few days:
Which employees can be put on the CJRS?
Reporting employees’ wages
Claim for wages
How much you can claim
Job Support Scheme & Jobs Retention Bonus
These have been cancelled, as the extended CJRS makes them redundant.
How we can help
Please be assured that we are here to provide you with support, so please contact us if you have any queries on the extension of the CJRS.
We are developing a spreadsheet to help with the calculations, which should be available on our website shortly.