Coronavirus Job Retention Scheme – CJRS
Update 03/03/2021
The Coronavirus Job Retention Scheme (CJRS) continues to be extended 'till the end of September 2021.
The UK Government continues to pay for 80% of employees' usual wages for the hours not worked, up to and including cap of lb2,500 per month, as much as the end of June 2021.
For periods in July, CJRS grants will cover 70% of employees' usual wages for that hours not worked, up to a cap of lb2,187.50.
In August and September 2021, this can then reduce to 60% of employees' usual wages up to and including cap of lb1,875.
Employers will have to still pay their furloughed employees at least 80% of the usual wages for that hours they do not work during this time, up to a cap of lb2,500 monthly. What this means is, for periods between July and September, employers will have to fund the difference between this and the CJRS grants themselves. Employers can also top up wages over the 80% if they wish, but they are not necessary to do so.
For periods from 1 May 2021 onwards, employers will be able to claim for eligible employees who were on employers' PAYE payrolls on 2 March 2021.
Update 17/12/2021
The furlough scheme has been extended 'till the end of April 2021 with the government continuing to contribute 80% towards wages.
Previously running from 1st November 2021 to 31st March 2021.
Same rules as per 04/11/2021 still apply.
Update 04/11/2021
CJRS has been extended from 1st November 2021 and can over rule the JSS that was meant to dominate.
- Employees will get 80% of salaries for hours not worked, up to and including maximum of lb2,500.
- Employer to pay for Employer NICs and minimum pension contributions.
- Neither employee or employers need to have used the CJRS to benefit in the extension.
- A bonus of lb1000 still paid to employers for every previously furloughed employee brought back to work and continuously employed to 31st Jan 2021.
- Employees must have been on payroll by having an RTI submission made to HMRC before 30th October 2021.
- The scheme will run from 1st November 2021 to 31st March 2021.
Further developments regarding the flexible JRS/Furlough scheme have finally been announced by HMRC, effective from 1st July.
As this can be a little more complex than the current scheme, we have answered the most common questions below.
Q: I'm not sure yet when I will re-open my company. Can I still furlough my staff as normal into July and perhaps beyond?
A: Yes obviously you can. It's not necessary to ask your staff to work in July if you do not think this will be possible, and you'll be able to claim as before
Q: I'm considering putting a handful of my staff on furlough next week. One has been furloughed previously, another has never been furloughed. Can one do that?
A: This is where things could possibly get complicated, so here goes;
If you possess an employee not furloughed, ever, and you want to furlough them now, the answer is no, you cannot include them in the current furlough scheme – and you won't be able to include them within the scheme from July onwards either.
If you've previously furloughed an employee, you can include them in the flexible scheme from July, but you'll have to hold back until then to furlough them again.
This is because the cut-off date for the minimum furlough duration of three weeks has passed.
Q : Am I allowed to create my own furlough rota, or perhaps is there a certain number of days I have to furlough staff before I'm able to reclaim?
A: Yes you may create your own customised rota; the scheme is entirely flexible to match you.
Each furlough claim period begins in the earliest date within the month your employees were furloughed, e.g. 1st July, towards the last date in the month these were furloughed, e.g. 31st July
A claim period should be at least 1 calendar week per month
To make use of an extreme example, if your staff were furloughed from 1st July, and you decided to send them back all to full-time working in the 7th July for the rest of the month, then you definitely can't claim for that days they were furloughed, because the whole period is only six days – less than a calendar week
Q : I don't understand – I intend to have my staff in focus on the 31st as it is a Friday so hopefully busy. Does which means that the claim period finishes earlier? Performs this mean I can not claim any furlough in August because no one was furloughed on the last day of July?
A: The above was just an example; your claim period for each month ends on the last day all of your staff were furloughed.
This doesn't mean you aren't allowed to claim again in the following month. Under this flexible scheme, each month is treated as a separate entity
Q : What do I pay my staff when they're working?
A: You would outlay cash their usual rate during the day if they are on a fixed monthly salary – you may also include non-discretionary or contractual overtime, non-discretionary bonuses and non-discretionary commission if this usually forms part of their regular pay
As a guide, the daily rate would be the same rate that was accustomed to set your furlough payments previously, back in March/April
For hourly rate staff, we'd make use of the average pay we calculated their furlough payments back in March/April
Q : Will the lb2500 cap still apply for the periods when staff are furloughed?
A: Yes.
Q : Can I still top up the furlough pay as before?
A: Yes.
Q : What if the employee goes sick?
A: They are treated as per the normal rules. In other words, SSP overrides furlough, unless you choose to outlay cash different things. Same applies to maternity pay – same rules, same statutory payments.
Q : What about staff holidays?
A: Please see my previous email about this. You can request staff take a certain amount of days before confirmed deadline provided you stick to the 2:1 rule.
Days are paid in the usual full pay rate, but you can still claim the 80%
Q: What's the best way to approach this being an employer come July?
A: Because the furlough calculations after the 1st July is a a bit more complex – HMRC have said they'll expect furlough claims from 1st July to become according to furloughed hours instead of straight business days – it will likely be helpful if you're able to plan your rotas for the month ahead as early as possible.
This can help me to sort out your furlough claim prior to processing the payroll, and therefore minimise any delay in submitting your claim.
Q: When do I start causing my very own furlough claims?
A: August happens when you'll begin to spend the money for employers pension (and possibly NIC's depending on where you are together with your employment allowance)
September and October also see an incremental reduction in the actual claim rate, going from 80%, right down to 70% and 60% respectively
The following updates were announced on the 29th May to ease employees back into work.
| 2021 | Government Pays | Company /Employer Pays | Additional Information |
| June | – 80% of employees wages as much as lb2500. – All employers national insurance covered. – All Pension covered |
– Nothing | – Scheme closes to new entrants from 30th June, therefore the final date for employees to become furloughed is 10th June. |
| July | – 80% of employees wages as much as lb2500. – All employers national insurance covered. – All Pension covered |
– Pay for the amount of time that their Part Time employees are working – topped up to 80% of full time wage, to total of lb2,500 by government | – Furloughed staff can be created part time employees – Employers may have until 31 July to make any claims according of the period to 30 June. |
| August | – 80% of employees wages as much as lb2500. | – Pay for the amount of time that their workers are working – Employers National Insurance. – Minimum Pension Contributions |
|
| September | – 70% of employees wages as much as lb2,190 | – Pay for the hours that their workers are working – Employers National Insurance. – Minimum Pension Contributions – 10% of furloughed Employee Salary |
|
| October | – 60% of employees wages as much as lb1,875 | – Pay for the amount of time that their workers are working – Employers National Insurance. – Minimum Pension Contributions – 20% of furloughed Employee Salary |
If you've any queries don't hesitate to get in connection with us.
