Updated Coronavirus Job Retention Scheme

Further updates have been issued by the government for the Coronavirus Job Retention Scheme (CJRS) which is due to close on 31 October 2020.

From 1 July, employers can bring furloughed employees back to work. This can be part-time with firms deciding the hours for their employees. Claims can still be made for the CJRS grant for hours not worked. The government will contine to pay 80% of salaries for the hours not worked.

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 furloughed.

This is the latest CJRS timetable from the government as of 1 July www.gov.uk

• for June and July, the government will pay 80% of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work
• for August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough
• 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

Note that 31 July 2020 is the last that you can submit claims for periods ending on or before 30 June.

Useful CJRS resources

View the Changes to the Coronavirus Job Retention Scheme here.

Full details on if you can claim for wages through the CJRS can be found here.

Flexible furlough Scheme starts today.

Business accounts

This has been such a challenging time for businesses so if you feel you need help navigating your financial journey in making informed accounting decisions for your business, get in touch with our team of accountants in Oxted, Surrey. We help our clients by being proactive and guiding them through all the different compliance and advisory challenges on their journey. We can help with any outsourcing tax services such as payroll, bookkeeping and VAT returns.