Coronavirus Job Retention Scheme (CJRS) Guidance
Changes to the UK Coronavirus Job Retention Scheme
Following recent changes to the UK Coronavirus Job Retention Scheme (CJRS) as part of getting the UK back to work, HMRC published updated guidance on 12th June detailing the CJRS. To further support previous communications with you on this topic, here are some follow-up points which we hope may help you in preparing for these changes if you are furloughing employees into July 2020.
Please note that 31st July is the last day that claims can be submitted for periods ending on or before 30th June. The first time employers can make claims for days in July will be 1st July; periods in July cannot be claimed before this date. Information on the claim process for the CJRS is available here.
Changes for Employers Under CJRS
Effective from 1st July, employers will be able to bring previously furloughed employees back to work part-time, and claim the CJRS grant for the remaining usual hours not worked. Employers will:
- only be able to claim for employees who had previously been furloughed for 21 or more consecutive days (taking place any-time between 1st March 2020 and 30th June 2020)
- be able to flexibly furlough – bring employees back to work for any amount of time, and any work pattern
- still claim furlough grant for hours flexibly furloughed employees do not work.
Flexible Furloughing Coronavirus Job Retention Scheme
In readiness for flexible furloughing, employers should consider how ‘usual’ and ‘furloughed’ can be captured and calculated in order to facilitate the claim process. There are various record keeping requirements that employers should make themselves familiar with – these include usual hours (including how these were derived) and actual hours worked.
As outlined on Steps to take before calculating your claim using the Coronavirus Job Retention Scheme, in addition to working out employee usual hours and furloughed hours, employers also need to decide the length of the claim period and understand what to include when calculating claims.
For employees furloughed 100% of the time, July sees no changes to the CJRS. From 1st August the grant will be reduced each month, some key dates as follows:
- 31st July – latest date for online applications for the CJRS grant to cover furloughed employees between 1st March and 30th June
- July – employers can reclaim 80% of wages up to a cap of £2,500 for the hours on furlough, also employer National Insurance Contributions and pension contributions. Employers have to pay for hours worked.
- August – employers can reclaim 80% of wages up to a cap of £2,500 for the hours on furlough only. Employers now pay all Employer National Insurance and pension contributions.
- September – employers can reclaim 70% of wages up to a cap of £2,187.50 for hours on furlough. Employers additionally top up wages to ensure 80% is paid up to a cap of £2,500, for time furloughed.
- October – employers can reclaim 60% up to a cap of £1,875 for the hours on furlough. Employers top up employees’ wages to ensure they receive 80% up to a cap of £2,500, for time furloughed.
Please also note that employers can choose to top up furloughed hours wages above 80% at their own expense. Employers must pay for hours worked.
End of the CJRS
The CJRS is expected to close on 31st October; updated HMRC guidance from 12th June is available as follows:
- Updated guidance on which employees can be furloughed to use the CJRS is available from: Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme.
- To help calculate employee’s wages, National Insurance contributions and pension contributions for claiming through the CJRS, examples are available from Find examples to help you calculate your employees’ wages.
- Guidance to support PAYE compliance is available from Reporting employees’ wages to HMRC when you’ve claimed through the Coronavirus Job Retention Scheme, depending if the employer is using the grant to pay wages or to reimburse wages that have already been paid
- Information on eligibility for the CJRS is available here and help understanding how much an employer can claim using the CJRS is available from: Calculate how much you can claim using the Coronavirus Job Retention Scheme.
Experts in Coronavirus Job Retention Scheme
We can provide you with the expertise your business needs to be fully compliant, and maximise, the Coronavirus Job Retention Scheme for your business and employees. If we can be of any further assistance please don’t hesitate to contact the Paycheck Plus team by calling us on +44 (0) 161 464 8720 or contact us online for more info today.
DISCLAIMER: The materials provided here are for general information purposes and do not constitute legal or other professional advice. While the information is considered to be true and correct at the date of publication, changes in circumstances may impact the accuracy and validity of the information. Paycheck Plus is not responsible for any errors or omissions, or for any action or decision taken as a result of using the guidance. You should consult the government website for the very latest information or contact a professional adviser for legal or other advice where appropriate.