Note: This information was superseded by changes made by HMRC.
With a second national lockdown in England announced, the Coronavirus Job Retention Scheme (CJRS) has been extended before it was originally set to end on the 31st October 2020.
Since its inception in March, the CJRS or ‘furlough’ scheme is estimated to have protected 9 million jobs and the amount claimed by the 1.2 million employers using the scheme has now surpassed £40bn.
The second nationwide lockdown, which will see pubs, restaurants, and other non-essential premises close and workers asked to work from home if they can once more is planned to take place from Thursday 5th November for 4 weeks until Wednesday 2nd December.
The CJRS extension will match the support given to employees and employers in August with employees receiving 80% of their salary for hours not worked up to £2,500.
Find out more about the extension, the eligibility requirements and what it means for employers and employees in our latest blog post.
The Job Retention Scheme Extension – What You Need to Know
Here are the key things you should know as a business or employee about the CJRS extension:
- The support offered by the extension will mirror support given in August with the government paying 80% of wages up to £2,500. This differs from the reduced rate of 60% up to £1,875 that employers could claim for in October. It has been confirmed that the start of the extension has been backdated to the 1st November 2020.
- Employers will only pay employer National Insurance Contributions (NICs) and pension contributions for hours not worked.
- Neither employee nor employer needs to have used the original CJRS scheme to use the extended one however employees need to have been on the payroll on 30th October 2020 and their RTI must have been submitted on or before 30th October 2020. Find out more about the eligibility requirements below.
- Flexible furloughing will be allowed in addition to full-time furloughing as in the case under the previous CJRS.
- The CJRS will now be available until the end of April 2021
Who Is Eligible?
All employers with UK PAYE schemes and a UK bank account can claim the CJRS grant for the hours their employees are not working. The CJRS grant can be used for employees on any type of contract and employers will be able to agree any working arrangements with employees.
It is important to note that whilst employees or employers do not need to have used the scheme before to be able to claim, employees must be on an employer’s PAYE payroll by 23:59 on 30th October 2020. This means that a Real Time Information (RTI) submission for that employee must have been made to HMRC on or before 30th October 2020.
Whilst they are still eligible, the government does not expect publicly funded organisations to use the scheme unless private revenues have been disrupted.
Other Support Measures Announced
As well as the extension to the CJRS, the government announced a range of new support measures including:
- Grants of up to £3,000 per month for business premises that are forced to close in England, grant value is determined by the rateable value of the property.
- £1.1bn to Local Authorities distributed at £20 per person to support businesses.
- Mortgage holidays to be extended by up to 6 months. Extension of the home repossession ban has also been proposed.
Need a Hand?
At FCF, we have been supporting our clients throughout the Coronavirus pandemic with successful furlough reclaims and help with grants. We hope that all businesses can utilise the schemes that have been made available to support them through these difficult times.
- Is Your Business Ready for the July 2021 Furlough Scheme Changes? - June 10, 2021
- Making Tax Digital – Latest Updates & Timeline - May 18, 2021
- Budget 2021 – Key Points & How They Impact You - March 8, 2021
This post was written by Steph Roffey