This is a developing article that is updated throughout the day. Last updated 5 November, 12.30pm.
The Coronavirus Job Retention Scheme (CJRS), otherwise known as the furlough scheme, which was due to be replaced by the Job Support Scheme (JSS) on 1 November 2020, has been extended to March 2021, delaying the start of the JSS.
KEY POINTS:
- The government will pay up to 80 per cent of an employee’s normal pay up to a cap of £2,500 and employers will be responsible only for National Insurance Contributions and pension contributions.
- As with the original CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish
- Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time
- When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days
- Employers should continue to pay the employee for hours worked in the normal way
- Neither the employer nor the employee needs to have previously used the CJRS. To be eligible, employees merely need to have been on an employer’s PAYE payroll before midnight on 30 October (with a Real Time Information (RTI) submission notifying payment for that employee to HMRC having been made on or before 30 October)
- The Government will confirm shortly when claims can first be made in respect of employee wage costs during November
- The CJRS will now remain open until the end of March 2021, however it is not currently clear if it will be the full 80% currently available
- The planned £1,000 Job Retention Bonus, due to be paid in January, has been scrapped
- Additional guidance is expected to be released on 10th November
Other measures:-
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- Up to £3,000 per month under the Local Restrictions Support Grant if their premise is forced to closed
- £1,000 for every furloughed employee kept on until at least the end of January
- £1,500 for every out-of-work 16-24 year old given a “high-quality” 6 month work placement
- £2,000 for every under-25 apprentice taken on until the end of January, or £1,500 for over-25s
- the next self-employment income support grant will increase from 55% to 80% of average profits, capped at £7,500
