Monday 15 June 2020

Changes to the Coronavirus Job Retention Scheme

HMRC have now published details on how the Coronavirus Job Retention Scheme will change from 1st July.

Important upcoming furlough dates: 

The scheme will close to anyone who hasn’t been furloughed for 3 weeks by 30th June.

The first time you will be able to make claims for days in July will be 1st July, you cannot claim for periods in July before this point.

From 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.

The 31st July is the last day that you can submit claims for periods ending on or before 30th June.

From 1 August 2020, the level of grant will be reduced each month. To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed.

For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

The Coronavirus Job Retention Scheme will close on 31 October 2020.

If an error is made in a CJRS claim that means you received too much money, you must pay this back to HMRC. You can notify HMRC of this online in the application system.

If you made an error in a CJRS claim and do not plan to submit further claim, HMRC are looking to update the system so you can make the notification online. This facility is not yet in place. 

You must keep records of all furlough claims for 6 years.


If you need any help with the Coronavirus Job Retention Scheme please drop us a line. 

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