Coronavirus Job Retention Scheme – Update

The Coronavirus Job Retention Scheme has been extended until 30 September 2021. From 1 August 2021, the government will pay 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough.

Claims for furlough days in July 2021 must be made by 16 August 2021.

How to report grant payments in Real Time Information

Find out how to report Coronavirus Job Retention Scheme grant payments on Real Time Information submissions: https://www.gov.uk/guidance/reporting-payments-in-paye-real-time-information-from-the-coronavirus-job-retention-scheme

Tax Treatment of the Coronavirus Job Retention Grant

Payments you have received under the scheme are to offset the deductible revenue costs of your employees. You must include them as income when you calculate your taxable profits for Income Tax and Corporation Tax purposes.

Businesses can deduct employment costs as normal when calculating taxable profits for Income Tax and Corporation Tax purposes.

Individuals with employees that are not employed as part of a business (such as nannies or other domestic staff) are not taxable on grants received under the scheme. Domestic staff are subject to Income Tax and National Insurance contributions on their wages as normal.

See more here: Claim for wages through the Coronavirus Job Retention Scheme: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme