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Coronavirus Job Retention Scheme Latest

The Government announced that the Coronavirus Job Retention Scheme (CJRS) is now extended until December 2020 in light of the 4 week national lockdown commencing on the 5 November in England.

The CJRS will operate as the previous scheme did, with businesses being paid upfront to cover wage costs.  A summary of the announcement can be found here.

The CJRS extension will see eligible employees receive 80% of their current salary for hours not worked, up to a maximum of £2,500 and employers will pay employer National Insurance Contributions and pension contributions only for the hours the employee does not work.

For employees to be eligible to be claimed for, they must have been on the employer’s PAYE payroll from 23:59 on 30.10.20, meaning that a Real Time Information submission notifying payment for that employee to HMRC must have been made on or before 30.10.20.  As previously:

  • Employees can be on any type of contract. Employers will be able to agree any working arrangements with employees.
  • Employers can claim the grant for the hours their employees are not working, calculated by reference to their usual hours worked in a claim period.
  • When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.
  • Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
  • For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts.

Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full time and neither the employer or the employee needs to have previously used the CJRS to be eligible under the extension.

The Government has indicated that additional guidance on the extended CJRS, including how to claim the extended support through an updated claims service, will be released shortly.

The Job Support Scheme, which was scheduled to come in on Sunday 1 November has been postponed until the extended CJRS ends.