Job Retention (aka Furlough) Scheme Extended to 30 April 2021
Posted on 8th January 2021 at 15:49
The Coronavirus Job Retention Scheme (CJRS) - also known as the Furlough Scheme, has now been extended until 30 April 2021.
Additional conditions have been added to the eligibility for furlough for those who have caring responsibilities as a result of COVID-19, including those who are caring for children at home following school closures.
A third income support grant for self-employed people, who have had a new or continuing impact from coronavirus between 1 November 2020 and 29 January 2021. This taxable grant will be worth 80 percent of average profits up to £7,500.
Mr Sunak, confirmed that the support will be provided to all four nations of the United Kingdom equally throughout the period, and also stated:
‘Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.’
Employers small or large, charitable or non-profit, are eligible for the extended Coronavirus Job Retention Scheme (CJRS), which was due to end on 31 October, will now be extended, with the UK government paying 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500 for periods from 1 November.
You will need to pay all employer National Insurance Contributions (NICs) and pension contributions. You can choose to top up your furloughed employees’ wages beyond the 80% paid by the UK government for hours not worked, but you are not required to do so. There will be no gap in support between the previously announced end date of CJRS and this extension.
Which employees are eligible for this Furlough Extension?
You can claim for employees who were on your PAYE payroll on 30 October 2020. You must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.
If employees were on your payroll on 23 September 2020 (i.e. notified to HMRC on an RTI submission on or before 23 September) and were made redundant or stopped working for you afterwards, they can also qualify for the scheme if you re-employ them.
Neither you nor your employee needs to have previously used the CJRS.
Further details on eligibility will be provided in the next few days. As ever, we are awaiting further guidance from the government, but our advice is that employers need to move quickly and ensure that employees are furloughed as soon as possible to take advantage of this extended Scheme.
Any new updates can be found on the Gov.UK website here.
What do I need to do now?
Check if your employees are eligible for the scheme, based on the information above.
Agree working hours with your employees, so they know if they are furloughed fully or part-time.
Remember that you need consent of employees to place them on Furlough. We will happily provide letters if you need them and you may be able to adapt ones you already have.
How do I claim?
While the government updates the system, employers will submit their wage claim to the government, and be refunded afterwards. After that, they will be paid upfront to cover the cost.
Employers also need to keep copies of records for 6 years including the amount claimed and claim period for each employee; the claim reference number for your records; your calculations in case HMRC need more information about your claim; usual hours of employees who were flexibly furloughed, including any calculations that were required and actual hours worked; inform employees that you have made a claim and that they do not need to take any more action; and pay employees their wages (the full amount claimed). More details on how to claim here.
For further support and guidance on making Covid-19 related changes within your workforce, please contact firstname.lastname@example.org or your Humber HR People consultant.
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