The scheme which was due to end on October 31st has been re-introduced as restrictions to curb the coronavirus pandemic increase to support employers throughout the nation and their employees.
The latest changes will no doubt have an impact on most if not all employers across the UK, the scheme has been extended for periods from November 1st will now give employees 80% of their wages capped at £2500.00 per period.
Employers are still liable to pay their own National Insurance Contributions and pension contributions and can choose whether they wish to top the employee payment up from 80% to 100% by submitting the extra 20% themselves, this however is at the employer discretion and is not a legal requirement of the scheme.
This is great news as there is also no gap between the previously announced scheme end date for the CJRS and the extension.
Employers will have the flexibility to ask employees to work on a part-time basis and receive furlough for the rest of their usual working hours or furlough them full time.
Claims can be submitted either shortly before, during or after the claim period once the payroll has been run. There will be a short period initially whilst the system is updated by HMRC and then this period claims can be put through in arrears.
Are your employees eligible?
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.
What do you need to do now?
- Employers need to check if your employees are eligible for the scheme, based on the information above.
- Then agree working hours with your employees, so they know if they are furloughed fully or part-time during November.
- Keep the records that support the amount of CJRS grant you claim, in case HMRC need to check it. Clients of Turpin Accounting Services do not worry about this as all correspondence is handled by us and sent over like previous.
On a final note please remain vigilant scams mimicking HMRC government messages have been sent out previously throughout the first lock down period. If you receive any correspondence of this type please forward it and report to HMRC at email@example.com or 60599
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