It has been widely reported in the press and other media that the Coronavirus Job Retention Scheme has been extended to March 2021.
Employers can claim for employees who were employed and on their PAYE payroll on 30 October 2020. The employer must have made a PAYE Real Time Information (RTI) submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.
Employers will have the flexibility to use the scheme for employees for any amount of time or shift pattern, furloughing employees on either a full-time or part-time basis, and will be able to vary the hours worked in agreement with the employee.
As under the current CJRS rules, employees can be on any type of employment contract.
Employees do not need to have been furloughed under the CJRS previously.
Employer contributions during the CJRS extension until January will be the same as in August 2020, i.e. the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough, employers will only be asked to cover Employers National Insurance and employer pension contributions. The government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.
Employers will have to pay the employee’s wages for the hours they work as normal, as well as employer National Insurance and employer pension contributions.
If you have any questions or need any help regarding eligibility for the Coronavirus Job Retention Scheme or making a claim, please contact me.