Government grants for up to 80% of salary of employees who would otherwise be laid off and are furloughed up to £2,500 per employee, backdated to 1 March. In addition grant will cover employer National Insurance Contributions (NIC) and minimum automatic enrolment employer pension contributions until 31 July 2020.
– CJRS closed to new entrants from 30 June, so to comply with the minimum three-week furlough rule new entrants must have been furloughed by 10 June. Employees on statutory maternity/paternity leave and military reservists who return to work after 10 June may still be furloughed, but only if they work for an employer who has previously furloughed employees.
– From July the number of employees an employer can claim for in a claim period, which cannot straddle month ends, cannot exceed the maximum number claimed for in an earlier claim period, so if some employees have alternated between working and being furloughed they should all be furloughed at some point in a June claim.
– From July, CJRS has allowed flexible part-time working. CJRS will pay employee costs (up to the threshold) for the time they are furloughed, while employers will pay employees for the time they are working.
– In July, CJRS continued to pay 80% of wages up to £2,500 per month plus employer NIC and minimum automatic enrolment employer pension contributions for the hours employees don’t work.
– In August, CJRS paid 80% of wages up to £2,500 for the hours employees don’t work. Employers were required to pay employer NIC and pension contributions.
– In September, CJRS is paying 70% of wages up to £2,187.50 for the hours employees don’t work. Employers will pay a minimum of 10% of wages for the hours employees don’t work plus employer NIC and pension contributions.
– In October, CJRS will pay 60% of wages up to £1,875 for the hours employees don’t work. Employers will pay a minimum of 20% of wages for the hours employees don’t work plus employer NIC and pension contributions.
– CJRS will end on 31 October.
There will be a one-off payment of £1,000 to UK employers for every employee furloughed under CJRS who remains continuously employed from 1 November 2020 to 31 January 2021. Employees must earn more than £520 per month on average. Payments will be made from February 2021.
Statutory redundancy payments to furloughed employees who are made redundant are to be based on normal wage rather than on a reduced furlough rate.
Office holders (including directors), salaried members of LLPs and agency workers are eligible for the scheme as long as they are properly furloughed and do not for example undertake any revenue generating function during their period of furlough. This also applies to salaried individuals who are directors of their own personal service company. The furloughing should be ratified by formal decision of the board/LLP.
The HMRC portal does not accept claims for employees hired after the date of submission of the February RTI but before 28 February if the March RTI was submitted after 19 March. Employees (such as directors) paid annually are ineligible for the scheme if the RTI covering their payroll was submitted after 19 March 2020.
Visit our Coronavirus Job Retention Scheme page for more information, including details of our CJRS claim form which can help you in preparing your claims.
Administrator: HMRC. Access the scheme here.
Payments to be made in six working days after claims submitted on a first-come first-served basis.
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