1st June 2020
Coronavirus Job Retention Scheme: Key Dates
On the 29th May Rishi Sunak gave an announcement on the changes to the CJRS (Furlough Scheme).
July 1st until the 31st August
From the 1st July you may bring employees back off furlough and place them on whatever hours you need them for. The employer will be responsible for 100% of the employees’ wages for the hours they work but you may claim back 80% of the furloughed hours via the CJRS.
To implement this, you will need:
- to confirm the working hours/patterns to your employees in writing. The minimum period you must do this for is one week although you may confirm the pattern/hours in writing for longer periods.
- To submit data on the normal hours the employee would be expected o work in the claim period and the hours they actually work in line with the temporary written agreement.
You may continue to use the scheme in its current form for those you do not have work for or who remain unable to return to work.
Detail of tapering and employer contributions:
June and July
The current scheme will exist with the additional flexibility allowing employers to bring employees back part-time. Employers will be responsible for paying employees for hours worked if they come back part time as detailed above but can claim 80% of the unworked hours.
Both the above will still exist but instead of the scheme paying the employers National Insurance and Pension Contributions, this responsibility will pass back to employers.
- The CJRS will drop to 70% contribution (£2,187.50 cap) for the hours the employee does not work.
- The employer is required to pay employers National Insurance and Pension Contributions.
- The employer is required to top up 10% of the wage of non-worked hours (up to the cap of £2,500)
- and if working part-time, remains responsible for payment of 100% of pay for worked hours.
As above but…
- The CJRS will drop to 60% contribution (£1875 cap) for the hours the employee does not work.
- The employer is required to top up 20% of the wage of non-worked hours (up to the cap of £2,500)
If you are a smaller employer some or all of your NICS bills are covered under Employer Allowance. Please visit the HMRC website to assess your company’s eligibility.
DEADLINES and LAST ENTRANTS TO THE SCHEME
THE CJRS Scheme closes to new entrants on the 30th June. You may only claim from the scheme after this date for employees who have been furloughed for a full three-week period prior to 30th
June meaning that 10th June would be the last date for any new furlough entrants to enter the scheme.
Employers will have until 31st July to make claims for the period to 30th June.
Webinars giving guidance on calculating claim back via the flexible scheme will be published on gov.uk on their ‘Coronavirus Job Retention Scheme’ pages.
This information is accurate at the time of publish. Please speak to your Accountant for any HMRC and payroll queries. Please contact your Elcons Advisor for any HR issues with your employees 01422 822842