Just when we thought we’d heard the last of the Coronavirus Job Retention Scheme (CJRS), especially as it was due to end at the end of October, it’s staying with us until 31 March 2021, with the Job Support Scheme being put on hold (so ignore my previous blog for the time being!). In this blog I take a look at the extended scheme. As ever, this post is based on what I know at the time of writing.
- Under the extended scheme, employers can claim up to 80% of employees’ wages, capped at £2,500 per month. Employers will have to pay employers’ National Insurance and pension contributions.
- The extended scheme is open to employers even if they haven’t previously furloughed staff. There is no limit on the number or employees who can be furloughed.
- To be eligible employees must have been on their employer’s PAYE scheme by 30 October 2020.
- As before, employers need employees’ agreement to either extend furlough or put them on furlough for the first time. Furlough can be backdated to 1 November 2020 provided a retrospective agreement was in place by 13 November 2020.
- Flexible furloughing remains in place therefore employees can work part-time and receive a furlough grant for the hours not worked.
- Employees who were on the employer’s payroll on 23 September 2020 and have since been made redundant, or stopped working for the employer, can be re-employed and put onto the furlough scheme. Similarly, those on fixed-term contracts that have expired since 23 September can also be re-employed and be the subject of a claim.
- The claim process remains the same however claims relating to November 2020 will have to be made by 14 December 2020, with claims relating to each subsequent month being submitted by day 14 of the following month.
- For claim periods starting on or after 1 December 2020, claims cannot be made for any period during which an employee is under notice (whether statutory or contractual).
- The extended scheme will be reviewed in January. Depending on the economic circumstances employers may have to contribute more, meaning that the 80% government contribution may not last for the duration of the extension.
- The Job Retention Bonus has been put on hold and will not be paid in February 2021. The government has said that a retention bonus, or incentive, will be “deployed at the appropriate time”.
Further guidance and documents
The government has published a policy paper which provides details for claims made between 1 November 2020 and 31 January 2021.
HMRC’s current guidance for employers on the scheme along with guidance for employees has been updated to incorporate the rules for the extended scheme.
As always, please get in touch if there is anything in this blog you would like to discuss.