From 1 May, the Government has made a number of changes to how the Job Retention Scheme works for furloughed workers.
This scheme was put into place to try and minimise staff redundancies due to COVID-19. The Coronavirus Job Retention Scheme has been extended several times but is currently due to close at the end of September 2021.
Below is a breakdown of how the scheme will operate until 30 September 2021.
Changes from 1st May 2021
For periods starting on or after 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee.
|You do not need to have previously claimed for an employee before 2 March 2021 to claim for periods starting on or after 1 May 2021.|
You can still claim 80% of their usual salary for hours not worked. The maximum grant for this period is £2500 per month. These changes will continue for June.
Changes from 1st July 2021
From 1st July, the grant will reduce to 70%.
Employers will need to make up the extra 10% to pay the employee 80% of their normal pay.
The maximum grant for this period is £2187.50 per month.
Changes from 1st August
For the last two months of the scheme, the grant will reduce to 60% with the employer contributing 20% to the employees wages.
The maximum grant will be £1875.00 per month.
Can an employee work for an employer while they are furloughed?
Yes, an employer can bring furloughed workers back to work part-time while still claiming the CJRS grant for their normal hours not worked.
Your claim will need to show how many hours the employee would normally work, as well as the number of hours actually worked.
What is the minimum amount of time that I can claim for an employee?
Employers can use the CJRS to claim for a minimum period of 7 consecutive days.
If you have any questions regarding eligibility for the Coronavirus Job Retention Scheme, please do not hesitate to contact us.