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Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme (CJRS) is a complex support package which was first announced on 20 March, with further updates and guidance provided by the Government throughout the coronavirus pandemic.

With a new month long lockdown starting from 5 November, the CJRS has been extended to run until December and on the same basis as the scheme available in August. Under this one month extension, employees can receive 80% of their current salary for unworked hours, up to a maximum of £2,500 per month. This is an improvement on the extended scheme in place until 31 October, which was introduced after the initial scheme ended, and provides a more generous arrangement for employers where the costs of retaining workers will be lower than they were last month.

This page is dedicated to questions related to the scheme for the period after 31 October 2020. We have also provided a lengthy summary of the FAQs previously asked by our clients, which can be viewed here.

What is the support available?

The grant will pay for 80% of an employee’s current wages for the time not working, up to a maximum of £2,500 per month. The employer must pay for all of the employer’s NIC and employer’s minimum workplace pension contributions in respect of those wages.

The employer can voluntarily top-up the employee’s furlough pay at their own expense.

How long will it last?

Currently it is understood the scheme will be in place until the end of the second lockdown period.

Who are qualifying employees?

To be eligible for the scheme, employees must have been on an RTI payroll return by 23:59 on 30th October 2020, but, unlike previous iterations of CJRS, do not need to have been furloughed previously.

Employees on any type of contract can qualify, including zero hours contracts.

Are employees allowed to carry out any work?

As with the extension of the original scheme, flexible furlough will be allowed, as well as full-time furlough. So it will be possible to, say, allow two staff members carry out one full-time role, rather than have one staff member working full-time and another on full-time furlough. Employees may be furloughed for a few days or hours per week. No minimum time for furloughed hours has been announced.

Which employers qualify?

Qualification for the scheme is the same as for the original scheme and the restrictions that will apply under the Job Support Scheme for larger employers are not relevant.

 

How can a claim be made?

In a similar way to previous CJRS claims, with the employer reporting hours not worked in a claim period, together with the usual work hours on an employee by employee basis.

Each furlough claim must be for a period of at least seven consecutive calendar days.

The next step

At UHY we have a number of advisers who are well used to dealing with the employment taxes part of HMRC, we can assist with communicating the employees you have furloughed, the reasons why, and the earnings on which the reimbursement should be based.

If you would like to discuss the support we can provide for your business during this difficult time, please contact your usual UHY adviser or complete the contact form.