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THE CORONAVIRUS JOB RETENTION SCHEME (CJRS) HAS BEEN EXTENDED – JOB SUPPORT SCHEME (JSS) POSTPONED

Following the announcement by the Prime Minister on the 31 October regarding the new lockdown in England for the commencing 4 November, the CJRS has been extended until December.

The Grant will ensure employees receive 80% of their current salary for hours not worked, up to a maximum of £2,500.

Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time, employers will be asked to cover National Insurance and employer pension contributions.

As with the current CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.

The Government will confirm shortly when claims can first be made in respect of employee wage costs during November, but there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension.

The JSS, which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends.

Who is eligible to claim the CJRS?

Employers

All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS.

The government expects that publicly funded organisations will not use the scheme, as has already been the case for CJRS, but partially publicly funded organisations may be eligible where their private revenues have been disrupted. All other eligibility requirements apply to these employers.

Employees

  • 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.

As under the current CJRS rules:

  • 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. Such calculations will broadly follow the same methodology as currently under the CJRS.
  • 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.
  • Additional guidance will be set out shortly and we will let you have the necessary information for clients and to make the claim when we receive it.

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