The Coronavirus Job Retention Scheme – A Quick Update!
Looking back to when the government first introduced the Coronavirus Job Retention Scheme (CJRS) on the 1st of March, it has been interesting to reflect on the myriad of changes we have seen since that date.
When the unprecedented scheme was initially announced, it was envisaged it would help support employers around the UK by covering 80% of employee wages, Employer’s NI and pension costs up until the end of May. Since that time we have had the payroll eligibility dates change, constant guidance updates, the eventual rollout of the reclaim system along with multiple extensions to the end date. All of this has been very reflective of the haphazard time we have all been living through in London!
Looking ahead we are now to see the scheme slowly wrap up, with the end date being 31st October 2020.
Important Changes – September
– From the 1st September the CJRS will pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.
– Employers will still need to pay their furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month and they will need to fund the difference between this and the CJRS grant themselves.
– The caps are proportional to the hours not worked. For example, if an employee is furloughed for half their usual hours in September, employers are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
– Employers will continue to have to pay Employer’s National Insurance and pension contributions from their own funds.
You can refer to our previous blog for more information around record-keeping and flexible furloughing in London.
Check if you can claim through CJRS
Claim for wages through CJRS
Job retention scheme calculator
Guidance on calculating your employee wages to claim
Work out your employee’s usual and furloughed hours
Get help from HMRC if you need extra support