The Coronavirus Job Retention Scheme (CJRS) and Furlough, a word you are used to hearing just recently, is changing and winding down over the next few months. The scheme is set to end on 31st October 2020. As an employer, you will have to start contributing towards the scheme from 1st September 2020. Here is your guide to the key dates to watch out for.
From 1st August although the Government still paid 80% of the total wages for those on furlough, up to the cap of £2,500 per month, Employers now had to pay employer National Insurance and pension contributions.
The Government will pay 70% of wages for those on furlough, up to circa £2,190 per month. Employers will pay National Insurance and pension contributions, plus 10% of furlough wages to make up 80% of the total, up to the usual cap of £2,500 per month.
The Government will pay 60% of wages for those on furlough, up to circa £1,875 per month. Employers will pay National Insurance and pension contributions, plus 20% of furlough wages to make up 80% of the total, up to the usual cap of £2,500 per month.
This is the end date of the Coronavirus Job Retention Scheme (CJRS) and the last date for which the Government will contribute to the wages of furloughed workers.
It remains to be seen whether the scheme will be subject to yet further amendments. We will continue to keep you updated.
Full guidance on the Job Retention Bonus Scheme is expected to be published.
This is the relevant period for eligibility for the newly announced Job Retention Bonus Scheme introduced by the Chancellor in his mini-Budget on 8th July 2020. For each previously furloughed employee who remains continuously employed during this 3-month period, employers will be able to claim a one-off £1,000 bonus payment. Those employees will need to earn at least £520 per month on average for each of those 3 months.
Employers will be able to claim the Job Retention Bonus (accurate RTI data to 31st January 2021 will have to be provided by employers for their claims to be successful).
HB Accountants are accountants for business. For financial and accounting guidance and support, please contact Keith or Karen. We’re still working hard to help you make the right decisions. Or call 01992 444466 or email directors@hbaccountants.co.uk for help. We look forward to hearing from you.
