01785 243276 admin@howardsca.co.uk

Are you aware of the important updates to the Coronavirus Job Retention Scheme (CJRS)? The scheme closes to new entrants on 30th June. This means that the last three-week furloughs must start on or before 10th June 2020.

So, if you have not furloughed an employee for 3 weeks by then, you will not be able to access the scheme and put employees on furlough later. Employers must make claims in respect of the period to 30th June by 31st July 2020.

Here are the details of the timeline of the changes

June and July

  • The government will pay 80% of wages up to a cap of £2,500
  • The government will also pay employer National Insurance (ER NICS) and pension contributions.
  • Employers are not required to pay anything.

From 1 July 2020

  • Businesses will be given the flexibility to bring previously furloughed employees back part time.
  • To be eligible for the CJRS grant under part time working, employers will have to agree with their employees any new flexible furloughing arrangement and confirm that agreement in writing.
  • The employer can claim under the CJRS for employees’ normal hours not worked.
  • Employers will have to pay in full for any hours worked including the payment of tax and NI contributions on those payments. 
  • When claiming employers will need to report and claim for a minimum period of a week.

From 1st August 2020

  • The government will pay 80% of wages up to a cap of £2,500.
  • Employers will pay ER NICs and pension contributions.
  • Part time working arrangements as above

From 1st September 2020

  • The government will pay 70% of wages up to a cap of £2,187.50.
  • Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
  • Part time working arrangements as above

From 1st October 2020

  • The government will pay 60% of wages up to a cap of £1,875.
  • Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
  • Part time working arrangements as above

PART TIME WORKING

The detail regarding part time working is said to be announced on 12th June.

 

We are here to advise

We are here to advise and you can contact us if you need any advice on the above points. Call us on 01785 243276.