Updates to the Coronavirus Job Retention Scheme (CJRS)

HMRC has updated its guidance on CJRS with various updates for employers as well as employees.

One of the key changes to the Scheme is that employees who have previously been furloughed can be brought in to work flexibly from 1 July, enabling employers to use more of their workforce in line with their business needs.

Employers will still be able to claim grants for the hours that are not being worked by part-time returning workers. However, from that date grants can only be claimed for those employees (with a few minor exceptions) who had previously been furloughed for at least a three-week period completed by 30 June, effectively meaning the last date an employee could commence furlough for the first time was 10 June 2020.

Changes to the scheme from 1 July:

  • Until 31 July 2020, the government will pay 80% of wages up to a cap of £2,500 as well as employer national insurance contributions (ER NICS) and pension contributions for the employees’ furloughed hours.
  • From 1-31 August 2020, the government will pay 80% of wages up to a cap of £2,500. Employers will be required to pay ER NICs and pension contributions for the employees’ furloughed hours.
  • From 1-30 September 2020, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500.
  • In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500.
  • A revised template for claiming grants for more than 100 employees to take account of flexible work hours is available.
  • The scheme will close after 31 October 2020.