Coronavirus Job Retention Scheme – ‘Furlough’ Recap
On December 17th, the Chancellor announced that the Coronavirus Job Retention Scheme (CJRS), commonly known as the ‘furlough’ scheme would be extended until the end of April 2021 with the government continuing to contribute 80% towards wages. This is to give businesses and employees across the UK certainty into the New Year.
Here are the key rules which currently apply to the scheme:
- For claim periods running between 1st November 2020 and 30th April 2021, employers can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month.
- Employers will pay employer National Insurance Contributions (NICs) and pension contributions.
- Employers can top up employee wages for hours not worked above the maximum salary threshold at their own expense.
- Employers should continue to pay employees for hours worked and deduct and pay the tax and NICs due on those amounts, in the usual way.
- Employers do not need to have used the scheme previously.
- Employers across the UK can claim, whether their business is open or closed, providing they have a UK PAYE scheme created before 30 October 2020, a UK bank account and are enrolled for PAYE online.
- For claim periods starting on or after 1 December 2020, HMRC will publish, from February 2021, employer names for those who have made claims under the scheme. This will also include an indication as to the value of the claim based on 14 banded ranges.
So far, it is estimated that the furlough scheme has protected 9.6 million jobs across the UK.
Claims for furlough days in December 2020 must be made by 14th January 2021.
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The information was correct at time of publishing but may now be out of date.