The Coronavirus Job Retention Scheme (CJRS) and Furlough, a word you are used to hearing just recently, is changing and winding down over the next few months. The scheme is set to end on 31st October 2020. As an employer, you will have to start contributing towards the scheme from 1st September 2020. Here is your guide to the key dates to watch out for.
CJRS – Changes to the Coronavirus Job Retention Scheme from 1st August 2020
From 1st August although the Government still paid 80% of the total wages for those on furlough, up to the cap of £2,500 per month, Employers now had to pay employer National Insurance and pension contributions.
CJRS – Employers contribution is changing from 1st September 2020
The Government will pay 70% of wages for those on furlough, up to circa £2,190 per month. Employers will pay National Insurance and pension contributions, plus 10% of furlough wages to make up 80% of the total, up to the usual cap of £2,500 per month.
CJRS – Employers contribution changes again from 1st October 2020
The Government will pay 60% of wages for those on furlough, up to circa £1,875 per month. Employers will pay National Insurance and pension contributions, plus 20% of furlough wages to make up 80% of the total, up to the usual cap of £2,500 per month
CJRS – Furlough ending – 31st October 2020
This is the end date of the Coronavirus Job Retention Scheme (CJRS) and the last date for which the Government will contribute to the wages of furloughed workers.
It remains to be seen whether the scheme will be subject to yet further amendments. We will continue to keep you updated.
CJRS – What next? Autumn 2020
Full guidance on the Job Retention Bonus Scheme is expected to be published
CJRS – 1st November 2020 – 31st January 2021 & Job Retention Bonus
This is the relevant period for eligibility for the newly announced Job Retention Bonus Scheme introduced by the Chancellor in his mini-Budget on 8th July 2020. For each previously furloughed employee who remains continuously employed during this 3-month period, employers will be able to claim a one-off £1,000 bonus payment. Those employees will need to earn at least £520 per month on average for each of those 3 months.
CJRS – Job Retention Bonus – February 2021
Employers will be able to claim the Job Retention Bonus (accurate RTI data to 31st January 2021 will have to be provided by employers for their claims to be successful).
We would like to credit M Newman of Newman HR for the key dates and information contained within this blog. Newman HR are a personalised employment law and human resources consultancy providing a bespoke service designed for small and medium sized businesses – Newman HR can be contacted by clicking here
In the meantime, do remember that the HB Accountants Covid Hub is jam packed with lots of useful information and links no matter your business size or sector. You can access this here. Alternatively, if you need bespoke advice or would like to spend your SME grant on financial support, please feel free to contact the team on 01992 444466.
We’re accountants for business and we’re here to help your business grow.
Our Covid19 hub is still available to any business that needs accounting support and our team is on hand for bespoke consultations.
Visit our COVID19 Business Hub for more information
HB Accountants are accountants for business. For financial and accounting guidance and support, please contact Keith or Karen. We’re still working hard to help you make the right decisions.
Or call 01992 444466 or email directors@hbaccountants.co.uk for help. We look forward to hearing from you.
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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
