Coronavirus Job Retention Scheme

The government’s Coronavirus Job Retention Scheme (CJRS) will remain open until the end of October 2020.

Flexible Furlough Scheme

The Coronavirus Job Retention Scheme is changing and becoming more flexible.

From 1 July 2020 employers will be able to bring back employees that have previously been furloughed for any amount of time while still being able to claim the CJRS grant for their normal hours not worked.

This gives employers the flexibility to bring previously furloughed employees back to work part-time – with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August 2020.

The scheme will close to new entrants from 30 June 2020. From this point onward, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June 2020.

This means that the final date by which an employer can furlough an employee for the first time will be 10 June 2020. Employers will have until 31 July 2020 to make any claims in respect of the period to 30 June 2020.

If your employees are unable to return to work, or you do not have work for them to do, they can remain on furlough and you can continue to claim the grant for their full hours under the existing rules up to 30 June 2020.

The rules regarding furloughed workers is complex. Further guidance can be found on HM Revenue & Custom’s website at https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme.

Update of how the furlough scheme will proceed

  • July 2020 – The government will continue to pay 80% of employee wages up to a maximum of £2,500 per employee per month, as well as covering employer national insurance and employer pension contributions (statutory minimum) for the hours the employee doesn’t work – employers will have to pay employees for the hours they do work.
  • August 2020 – The government will continue to pay 80% of wages up to a a maximum of £2,500 per month per employee however employers will be required to pay employers national insurance contributions and pension contributions.
  • September 2020 – The government will pay 70% of wages up to a cap of £2,187.50 per employee per month for the hours the employee does not work – employers will pay employers national insurance contributions, pension contributions and 10% of the wages for the employee for the period making the employees wages up to 80% for the period they do not work.
  • October 2020 – The government will pay 60% of wages up to a cap of £1,875 per employee per month for the hours the employee does not work – employers will pay employers national insurance contributions, pension contributions and 20% of wages for the employee for the period making the employees wages up to 80% for the period they do not work.

The furlough process has added significant complexity to the payroll process. It will be vitally important if we prepare your business payroll on your behalf that you confirm in detail the hours worked by your employees to ensure their payroll has been calculated correctly and we make the correct furlough grant claims.

If you have any questions or concerns regarding your payroll or furlough claims please do not hesitate to get in touch and one of the team will help on 01228 904 904.

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