The Coronavirus Job Retention Scheme (CJRS) has been extended for a month.
Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme, which will now continue for a further month. Businesses will have the flexibility to bring furloughed workers back to work on a part time basis or furlough them full time. Employers will need to cover the costs of employer National Insurance and employer pension contributions.
What is covered?
- For hours not worked by the employee, the government will pay 80% of wages up to a cap of £2,500. The grant must be paid to the employee in full.
- Employers will pay employer NIC and pension contributions and should continue to pay for hours worked in the normal way.
- Employers can top up the wages at their own expense if they wish.
Who is eligible?
- All employers with a UK bank account and a UK PAYE scheme are eligible. Neither the employer nor the employee needs to have used the scheme previously.
- The Government expects publicly funded organisations not to use the scheme.
- Employees must be on the PAYE payroll system by 23:59 on 30 October 2020. An RTI submission must have been made to HMRC on or before 30 October 2020 notifying payment to that employee.
- Employees can be on any type of contract.
- Employers will be able to agree working arrangements with employees.
- Employers can claim the grant for any hours not worked by the employee, calculated by reference to their usual hours worked in a claim period.
- To claim the grant employers will need to report and claim for a minimum of 7 consecutive calendar days.
- Employers will be required to report the hours worked along with the usual hours the employee would be expected to work in a claim period.
- For hours worked, employees will be paid by their employer who will be responsible for paying the tax and NIC due on those amounts.
For more information on The Job Retention Scheme extension please go to the gov.uk website
Further details of how to claim will be made shortly. We will, of course, keep you updated.
If you have any further questions or queries please contact us.