November 2020 Update
Following the announcement of a second lockdown in England, the Government has confirmed the Coronavirus Job Retention Scheme will remain open until the end of March 2021, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Under the extended scheme, the cost for employers of retaining workers will be reduced, meaning the extended furlough scheme is more generous for employers than it was in October.
- To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
- Employees can be on any type of contract. Employers will be able to agree any working arrangements with employees.
- Employers can claim the grant for the hours their employees are not working, calculated by reference to their usual hours worked in a claim period.
- When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.
- Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
- For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts.
The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been postponed until the JRS/furlough scheme ends. Additional guidance is expected from the Government. Please contact Alexis Lane for more information.