As part of the government’s next phase of its response to COVID-19, it has been announced that the CJRS will remain open until 31st March 2021.
For claim periods running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum to £2,500 per month – the cap is proportional to the hours not worked.
Until January 2021, employer contributions will be the same as those in August; for the hours not worked by employees, employers will be asked to cover National Insurance and employer pension contributions.
In January 2021, the government will review the scheme to decide whether the economic situation is recovering enough to ask employers to contribute more.
Employers can claim for employees who were employed and on their PAYE payroll on 30th October 2020. The employer must have made a RTI Submission to HMRC between 20th March 2020 and 30th October 2020, which would indicate that the employee was on the payroll at this time.
There is flexibility how to use the scheme in the sense of furloughing employees on a full time or part time basis and can vary the hours worked (in agreement with the employee).
Under the extension, employees do not have need to been furloughed under the CJRS previously.
Job Retention Bonus
It is important to note that the Job Retention Bonus will no longer be paid in February 2021 due to the extension of the CJRS. At the appropriate time, another incentive will be announced.
Should you have any queries or questions in respect of the above, please reach out to your usual Arnold Hill & Co contact, call our mainline on 0207 306 9100 or email our general address – email@example.com
The information in this article is believed to be factually correct at the time of writing and publication, but is not intended to constitute advice. No liability is accepted for any loss howsoever arising as a result of the contents of this article. Specific advice should be sought before entering into, or refraining from entering into any transaction.