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The Coronavirus Job Retention Scheme (CJRS) is closing soon. There will be no further support from government once the scheme ends on 30 September 2021. What happens next? It’s time to take stock. Employers must make some key business decisions. 

 

The CJRS is closing 

Until the end of September the government will contribute 60% towards the cost of furloughed employees’ wages. The monthly cap is £1,875. Of course, employees will continue to receive 80% of their wages up to £2,500 per month for hours not worked. Employers contribute 20% to make up the difference. This is capped at £625. The caps are proportional to the hours not worked. 

  

Meet the deadlines 

As ever, it’s important to adhere to the deadlines. Submit claims for furlough days in August by 14 September 2021. Claims for September are due by 14 October 2021.  

 

Be sure to provide all relevant information. Otherwise, payment may be delayed. HM Revenue & Customs (HMRC) may reject incomplete or incorrect claims. 

 

Tax and NICs 

Employee tax and National Insurance Contributions (NICs) apply to all CJRS payments. It’s up to employers to pay them to HMRC. Fail to do so and the full grant becomes repayable.  

 

Naturally, employees are due their usual rate of pay for hours worked. Businesses are therefore liable for employer NICs and pension contributions on that pay.  

   

Eligible to claim? 

Have you used the CJRS yet? Don’t worry, it’s not too late. Even though the CJRS is closing soon, you may be able to obtain support. First, check if you meet the eligibility criteria. Then decide which employees to put on furlough.  

 

Claims process 

Before calculating a claim, work out your employees’ wages. Determine the length of the claim period. Then, decide what you can include when calculating wages. Also, work out employees’ usual hours and furloughed hours. Next, calculate how much you’re entitled to receive. Finally, put in a claim. You can claim before, during or after you process your payroll. However, you must submit your claim by the relevant claim deadline. Always report a payment in PAYE Real Time Information. 

 

Made a mistake? 

Check the GOV.UK website for full details about the Coronavirus Job Retention Scheme. 

Find out what to do if you’ve claimed too much. And the next step if you’ve not claimed enough. To correct a claim for August, amend it by 11.59pm on 28 September 2021. Make amendments to September CJRS claims by 28 October 2021. 

  

Record keeping 

Are you using the CJRS? If so, you must keep records for 6 years. Document the amount claimed and claim period for each employee. Include the claim reference number. Also keep a note of your calculations. You may need this if HMRC requests more information. For employees who were flexibly furloughed, record usual hours and actual hours worked. 

 

Key decisions  

Since the CJRS is closing, it’s decision time for employers. Essentially, there are 3 options:  

  • bring employees back to work on their normal hours 
  • reduce your employees’ hours 
  • terminate their employment (normal redundancy rules apply to furloughed workers)  

 

Do you need help? 

The CJRS is closing, so what happens next? You may want some advice. Our payroll team has been helping scores of local employers. Contact us on 01785 243276.