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What happens after the Furlough Scheme ends?

08.10.2020

Business

The Furlough Scheme (CJRS) will end as planned on 31st October. This will be replaced by the Job Support Scheme, which is a lot less generous but will still help employers to keep their staff employed.

 

All employers with 250 or less employees or larger employers who can demonstrate their loss of turnover, will be eligible.

 

The scheme has been extended to all employees that were on payroll as of 23 September 2020. This means a Real Time Information (RTI) submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020.

 

It is important that the employee has confirmed in writing that they accept the Job Support Scheme.

 

Employees will only qualify for the new scheme if they work a minimum of 33% of their normal hours.

 

The Job Support Scheme is due to start on 1st November 2020 and will run for 6 months. Wage payments to employees will be a combination of the employer and the government.

 

How it works:

The remaining 67% is met by:

This means that the employee would receive 78% of their usual wage.

 

Employers will still be liable for Employers NI and Employers Pension contributions.

 

Usual hours for zero hours or irregular earnings calculations will be in line with current CJRS calculations. This will not include any periods employee received furlough.

 

Employees can work more than 33% of their usual hours all hours worked are at usual contracted rate, it just means the employer and government contribute less.

 

For further information or advice please contact our payroll team on 01223 810100.

 

 

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