Coronavirus Job Retention Scheme – Update
Yesterday (3 March 2021), the Chancellor, Rishi Sunak, delivered the Spring 2021 Budget. He announced that the Coronavirus Job Retention Scheme (“CJRS”) will be extended for a further five months until 30 September 2021, to support those businesses who continue to be impacted by the COVID-19 pandemic.
The CRJS rules will mostly remain the same with a few minor changes in the near future. Employers will continue to be able to claim 80% of an employee’s usual salary for hours not worked (up to a maximum of £2,500 per month). There will continue to be no employer contributions beyond National Insurance contributions and pensions required in April, May, and June. However, from July, the Government will introduce an employer contribution towards the cost of unworked hours. This will be 10% in July and 20% in August and September.
In terms of which employees can be placed on furlough leave under the CJRS, for periods on or before 30 April 2021, employers can claim for employees who were employed on 3 October 2020, as long as they made a PAYE RTI submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.
For periods starting on or after 1 May 2021, employers will be able to claim for employees who were employed on 2 March 2021, again as long as they made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee. Details of how employers should calculate their claims for periods starting on or after 1 May 2021 will be provided in updated guidance in due course.
Full guidance can be found here.
If you have any questions about the CJRS, or any other employment law issues, please contact a contact a member of our Employment Team.