CJRS "Furlough Scheme" continues
The Government has confirmed that the Coronavirus Job Retention Scheme (CJRS) will continue in a more generous form until 31 March 2021 for all parts of the UK.
The claims process for the CJRS, also referred to as the "Furlough Scheme", is now open for periods from 1 November.
HMRC has confirmed that they intend to publish a list of all employers who use the scheme, so employees will be able to find out if their employer has claimed for them.
How will the scheme work?
The furlough scheme will once again have a more generous scope, meaning that employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500, paid for by the Government.
Employers will need to pay for National Insurance and Pension Contributions.
You do not need to have used the scheme before in order to benefit now, but you will need to meet the eligibility criteria which can be viewed on the GOV.UK website by clicking here.
New '14-day' deadline to be introduced
HMRC are introducing a new deadline for furlough claims, so you must have submitted your claim within 14 calendar days of the end of the month to which they relate (unless this falls on a weekend in which case it is the next working day).
An example would be:
Payroll period: 1 November - 30 November
Claim deadline: 14 December
A more complex example where your payroll run staggers two calendar months:
Payroll period: 15 November - 14 December
Claim deadline 1: 14 December (for period 15 November - 30 November)
Claim deadline 2: 14 January (for period 1 December - 14 December)
In this scenario, you would need to submit two claims for the one payroll period to fall in line with HMRC's new calendar month deadlines.
If you are making these claims yourself, please don't delay in submitting your claim. We do not want you to miss out on this vital support - please let us know if you have any queries.
If we prepare and submit furlough claims on your behalf and your payroll periods stagger two calendar months, we will be in touch with you to discuss how to ensure the claims can be submitted on a timely basis.
What does this mean for the other related-support schemes?
With the continuation of the furlough scheme, the Job Retention Bonus will no longer be paid in February 2021 - an alternative incentive will be announced nearer the time.
The Job Support Scheme (JSS) which was due to replace the CJRS from 1 November has now been postponed and we expect this to replace the furlough scheme next year.
Action to take now
- Any claims relating to periods up to 31 October need to be submitted on or before 30 November 2020 - if you miss this deadline your claim will not be accepted. Going forward don't forget the new 14-day deadline for your future furlough claims.
- Check up-to-date guidance on the eligibility criteria for the relevant period to make sure you can claim this support.
- Read the new guidance on the extension - click here for the full article on GOV.UK.
- Agree working hours with any employees you wish to furlough for November and agree any changes to their employment contract.
If you have any queries, or if you'd like us to prepare and submit the CJRS claims on your behalf, please get in touch with your usual Jerroms contact who will discuss this with you.
Always remember to keep clear records to support the amount of CJRS grant you have claimed. You can easily view, download or print copies of your historic claims by logging into your CJRS service on GOV.UK.
We are here to help...
We are here to help in any way we can - please get in touch with us on 0121 693 5000 (Solihull Office), 01527 833124 (Bromsgrove Office) or 01675 466344 (Coleshill Office).