Coronavirus Job Retention Scheme Updates
The Chancellor Rishi Sunak, announced that the Coronavirus Job Retention Scheme will remain open until 31 March 2021. Here, Dragon Argent assess what the latest announcements mean and how they might impact your business.
In summary, for claim periods running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. The percentage may be reviewed for February and March.
So far we know the following key points regarding the extension of the scheme:
Employers can claim even if they, or the relevant employees, had not previously used the scheme.
To be eligible, employees need to have been included in an RTI submission by the 30th October 2020, i.e. included in a payroll submission to HMRC by that date.
The furlough will continue to be flexible.
Employees who have previously been furloughed continue to have their reference pay and hours based on the existing furlough calculations.
Employees who have not previously been furloughed will have a different pay and hours reference period.
Employees that were on the payroll on 23rd September 2020 who have since been made redundant, or stopped working for their employer after that date, can be re-employed and claimed for.
The Job Support Scheme and the Job Retention Bonus have been put on hold (for now).
HMRC have also released further guidance which can be found on their website. It covers:
How to check if you can claim and eligibility criteria
Understanding which type of employees can be put on furlough
The other types of employee’s employers can claim for
Recommended steps to take before making a claim
Guidance on how to calculate your claim
How you should report employees’ wages to HMRC once you have made a claim
Guidance on how to calculate wages
Support for furloughed employees
HMRC’s guidance can be reviewed in the following link. However, it is not always easy to interpret how support may apply to your business or how it can be accessed, so if you would like to discuss what the latest updates mean, please don’t hesitate to get in touch.
https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme