As restrictions relax, more businesses are getting back to work. However, many still need help. Government financial support remains in place for those impacted by Covid-19. But, it is reducing. Employers should be aware of changes to the Coronavirus Job Retention Scheme (CJRS).
April CJRS claims
There is still time to submit furlough claims for April. But you need to act quickly. The deadline is Friday 14 May 2021. HM Revenue & Customs (HMRC) has developed a tool to help you. Check if you’re eligible to claim. And how much, using the CJRS calculator.
Currently, employers can claim 80% of furloughed employees’ wages for hours not worked. The amount is capped at £2,500 per month. This applies until 30 June 2021.
Tax and NICs
Remember, employers are responsible for employee tax and National Insurance contributions. You must pay them to HMRC. It’s a condition of applying for the support. If you don’t, the full CJRS grant becomes repayable.
Changes to the Coronavirus Job Retention Scheme
Eligibility for CJRS support changes this month (May). You may have employees who are now eligible. From May onwards you can claim for employees who were on the PAYE payroll on 2 March 2021. You must have made a PAYE Real Time Information submission between 20 March 2020 and 2 March 2021. And you should have notified HMRC about that employee’s earnings.
From 1 July 2021 further changes to the Coronavirus Job Retention Scheme come into force. Importantly, the level of grant reduces. Employers must contribute towards the cost of furloughed employees’ wages. In July the government will pay up to 70% of wages for hours not worked. This is capped at £2,187.50 per month. In August and September the government’s contribution reduces to 60%. Plus, the monthly cap is lower, at £1,875. Employees will continue to receive 80% of their wages up to £2,500 per month for hours not worked. Employers are expected to make up the difference. Find out more about changes to contributions.
Eligible to claim?
Have you benefitted from the CJRS before? If not, it doesn’t matter. You may be able to use the scheme. Check now. If you meet the eligibility criteria, you can claim.
Full details about the Coronavirus Job Retention Scheme are available here.
We’re here to help
Got a query about changes to the Coronavirus Job Retention Scheme? Contact us on 01785 243276.
If you need to contact HMRC
Taxpayers often have questions. Or need to ask HM Revenue & Customs (HMRC) for advice. Are you completing your returns properly? Do you receive the correct tax credits? Have you overpaid tax for the previous year? Whatever the reason, it’s time to talk. So, what’s the best way to contact HMRC?