The previously announced Job Support Scheme, that was planned to be introduced from 1 November 2020 to replace the Coronavirus Job Retention Scheme (CJRS), has now been withdrawn and the CJRS has been extended from 1 November 2020 until 31 March 2021.
The extension of the Scheme will be accessible for any employers who have put staff on furlough in the UK since the start of November.
Crucially, it is now available for employers and employees who have not previously used the CJRS during the period from March 2020 onwards, allowing those who did not previously qualify to access the Scheme.
You can claim for employees not previously furloughed provided they were on an RTI payroll submission by 30th October 2020. All employees who were not previously on furlough must be informed in writing and agree to be furloughed. If employers are not choosing to top up salary to 100% then the employee must also agree that they accept that their pay will be reduced to 80%.
Under the extended CJRS, the Government will pay 80% of the employees’ usual wage for hours not working, up to a limit of £2,500 per month.
the employer will need to continue to pay National Insurance and pension contributions for employees that are on the scheme.
The support will be reviewed in January and it is likely that the Government support percentage will decrease to require employers to contribute more.
The HMRC portal for claims is likely to open on 11 November 2020 and the claims must now be prepared on a monthly basis, with any claims prepared and submitted within 14 days of the month they relate to i.e. claims for November 2020 must be submitted prior to 14 December 2020.
Any claims for October 2020 must be submitted on or before 30 November 2020.
As part of the extension of the CJRS, it was also confirmed that the Job Retention Bonus (£1,000 grant to employers per employee returning to work from furlough) will no longer be paid in February 2021 as the CJRS will still be active. It has yet to be confirmed, but it is believed that an alternative retention scheme will be introduced at a future date.
If you made employees redundant, or they stopped working for you on or after 23 September 2020 you can re-employ them and put them on furlough. This applies if the employee was employed and on your PAYE payroll on or before 23 September 2020. This means an RTI submission notifying payment in respect of that employee to HMRC must have been made between 20 March and 23 September 2020.
Publication of Employers claiming under the CJRS
HMRC will be publishing the names of Companies and who use the furlough scheme from December 2020 onwards.