The government have extended the CJRS scheme to 30th September 2021.
Under CJRS rules for the period November 2020 to April 2021 employees that have been employed by the company on or before the 30th October 2020, and were included on a RTI submission to HMRC during the period 20th March 2020 and 30th October 2020 are eligible for CJRS, regardless of whether they were furloughed under the original CJRS. Furlough calculations for new furloughed employees are based on earnings between 20th March and 30th October.
For the period May 2021 to September 2021 eligibility criteria changes again. Employers can furlough employees who were employed on or before the 2nd March 2021 as long as they were included on an RTI submission between the period 20th March 2020 and 2nd March 2021. You do not need to have previously claimed CJRS for these employees. HMRC are yet to release guidance on what period is to be used in order to calculate furlough for these employees.
Subsidy support levels for CJRS are as follows;
Up to 30th June 2021 – Government will pay 80% up to a cap of £2500 pcm per employee. Employer is to pay all NI and pension contributions.
July 2021 – Government will pay 70% up to a cap of £2187.50 pcm per employee and the employer has to top up 10% so that the employee still receives 80% of pay. Employer is to pay all NI and pension contributions.
August & September 2021 – Government will pay 60% up to a cap of £1875 pcm per employee and the employer has to top up 20% so that the employee still receives 80% of pay. Employer is to pay all NI and pension contributions.
The employer can opt to top up wages above the 80% minimum if they wish to do so.
If your employee is moving from full furlough to flexi furlough then you will need to have an updated written agreement in place confirming this.
Employees are only entitled to be paid national minimum/living wage on hours they have worked. Furloughed hours are excluded.
Due to there being an estimated £3.5 billion in fraudulent claims since the beginning of the scheme, HMRC are now taking action to retrieve these funds.
From January, HMRC now publish monthly reports which lists employers that have claimed CJRS, from February the report also shows claim bands.
Employees are now also able to see on their personal tax accounts if a furlough claim has been submitted in their name. Employees are being encouraged by HMRC to report any claims made in their name which they have not received or were not entitled to.
Due to the CJRS being extended to September it is highly unlikely that the Job Support Scheme will be implemented.
The £1000 Job Retention Bonus has also been cancelled. It is unlikely that the Government will introduce any additional incentives to employers. Should you have any questions, please do not hesitate to contact our team.
As reported by Reuters and elsewhere, British businesses have voiced concern about recent tax rises imposed on them by Chancellor of the Exchequer Rishi Sunak, while suggesting that Budget statements …
The UK Government’s initiative Making Tax Digital – or MTD – has been enforced for over two years, and yet four out of five businesses in the country still aren’t ready for the scheme, accordi…