News Updates

CJRS extended to March 2021

Monday 23rd November 2020

The CJRS will now run to 31 March 2021: https://www.gov.uk/government/news/government-extends-furlough-to-march

The Government will contribute 80% (subject to the cap of £2,500 per month) of usual salary for claims between 1 November 2020 and 31 January 2021.  This will be reviewed in January 2020 and may then be reduced, with employers required to contribute.  Employees can be furloughed full-time or flexibly and there is no requirement for an employer to have previously used the CJRS or for an employee to have been furloughed before.

For claim periods starting on or after 1 December 2020, employers cannot claim for any days when a furloughed employee is serving a contractual or statutory notice period for the employer. This is a significant change from the previous CJRS rules.

The deadlines to submit a claim are as follows:

The following guidance has been updated online:

Check if you claim: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Check which employees you can furlough: https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme

Other types of employees: https://www.gov.uk/government/publications/individuals-you-can-claim-for-who-are-not-employees

Steps to take before calculating a claim: https://www.gov.uk/guidance/steps-to-take-before-calculating-your-claim-using-the-coronavirus-job-retention-scheme

Calculate your claim: https://www.gov.uk/guidance/calculate-how-much-you-can-claim-using-the-coronavirus-job-retention-scheme

Claim for wages: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

Reporting to HMRC: https://www.gov.uk/guidance/reporting-payments-in-paye-real-time-information-from-the-coronavirus-job-retention-scheme

Example calculations 1: https://www.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your-employees-wages/examples-of-how-to-work-out-80-of-your-employees-wages-national-insurance-contributions-and-pension-contributions

Example calculations 2: https://www.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your-employees-wages/example-of-a-full-calculation-for-an-employee-who-is-flexibly-furloughed
 
Repay grants to HMRC: https://www.gov.uk/guidance/pay-coronavirus-job-retention-scheme-grants-back

Employee guide: https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

HM Treasury’s instructions to HMRC about how CJRS is to work have also been published: CJRS extension

As well as technical information, the direction requires HMRC to publish details of employers who use the CJRS and the amount claimed, or a “reasonable indication” of the claim.

• Tweet

All information in this update is intended for general guidance only and is not intended to be comprehensive, or to provide legal advice.