Government extends Job Retention Scheme (Furlough) to March 2021
As the lockdown has now started for England and continues elsewhere, the Government has extended the Coronavirus Job Retention Scheme (CJRS) across all regions of the UK.
The Chancellor announced that CJRS will be extended until the end of March 2021 for all parts of the UK.
For claim periods running to 31 January 2021, the UK Government will pay 80% of employees’ usual wages for hours not worked, up to a cap of £2,500 per month.
The £2,500 cap is proportional to the hours not worked.
Employers will have to pay the employee’s wages for the hours they work as normal, as well as employer National Insurance and employer pension contributions.
The UK Government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.
Employers who can claim under the CJRS extension
- Employers do not need to have used the CJRS previously
- Employers across the UK can claim if they are open or closed.
- Must be on the payroll on 30 October 2020
- An RTI submission to HMRC must have been made between 20/03/20 & 30/10/20, notifying a payment of earnings for that employee.
- Employers can use the scheme for any amount of time or shift pattern, furloughing employees on either a full-time or part-time basis
- Employees do not need to have been furloughed under the CJRS previously.
Employees re-employed by their employer
Employees that were employed and on the payroll on 23 September 2020 who were made redundant or stopped working for their employer afterwards can be re-employed and claimed for.
When employees are on furlough
During hours which employees are recorded as being on furlough, they cannot do any work for their employer that makes money or provides services for their employer or any organisation linked or associated with their employer.
However, they can:
- take part in training
- work for another employer (if contractually allowed)
HMRC will publish details of employers who make claims under the extended CJRS scheme, starting from December.
Full details will be included in guidance which will be published on 10 November 2020.
The policy paper regarding the extension can be found at https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme
The guidance regarding the Job Retention Scheme, which should be updated with further details on 10 November 2020, can be found at https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
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