CKLG BLOG

Scrap that! Furlough Scheme extended until March 2021

12.11.2020

Private Client

It was only last week that we issued a blog on the Job Support Scheme (JSS), however the government have now announced that they will be withdrawing the JSS and will be extending the original Furlough Scheme (CJRS) until the 31 March 2020.

It has come with great frustration and relief for business owners. Frustration due to spending time and resources figuring out how the Job Support Scheme was going to impact their business and a relief to now know they have the governments support for another 5 months, with employees continuing to receive 80% of their salary.

Unlike the original scheme, employees are now allowed to carry out some work, providing a greater degree of flexibility for employers.

There is not much you need to adapt from the first time around. The only significant difference is that eligible employees will have had to have been reported on the RTI submission anytime between 20 March and 30 October 2020.

The closing period for claims has also been significantly reduced, so make sure you don’t miss out! 

Here is what you need to know: 

• Employers do not have to have used the CJRS previously in order to use it now
• As before, employees can be on any type of employment contract
• For employees that have previously been furloughed, the same calculations are used for calculating ‘reference pay’ and ‘usual hours’ (last pay period before 19 March 2020 for fixed hours employees or average wages for 2019/2020 tax year for variable hours employees)
• For an employee that has not been previously furloughed the calculations used for calculating ‘reference pay’ and ‘usual hours’ are either the last pay period before 30 October 2020 for fixed hours employees or average wages for 2020/2021 tax year for variable hours employees. 
• Employees will receive 80% of their ‘reference pay’ up to a maximum of £2500 per month
• Employer can flexibly furlough employees
• Employer is liable for the pay for the hours worked if flexibly furloughed
• Employer is liable for all Employer National Insurance and Employer Pension contributions
• The previously mentioned Job Retention Bonus (JRB) of £1000 per employee in February 2021 has now been withdrawn with the implementation of a retention incentive being launched at a more appropriate time.

Our payroll department are keeping up to date with the new guidance as it is released with numerous hours of webinars and technical reading to make sure that we can assist our clients through these tough times.

If you need any assistance please do get in touch.