Employment Legislation

The Coronavirus Job Retention Scheme: What's The Latest?

Legislation

The Coronavirus Job Retention Scheme: What's The Latest?

Due Date

Ongoing

Summary

In his Spring Budget 2021, Rishi Sunak announced the Coronavirus Job Retention Scheme (CJRS) would be extended until 30 September 2021. A further Treasury Direction will be needed to provide the legal underpinning for this latest extension of CJRS.

Key considerations

  • For claim periods between 1 November 2020 to 30 April 2021, employers can claim for any employee who was employed in the business on 30 October 2020 even if that individual hadn’t already been furloughed. However, the employee must feature on an HMRC PAYE Real Time Information submission submitted by the employer between 20 March 2020 and 30 October 2020.
  • For claim periods starting on or after 1 May 2021, employers can claim for any employee who was employed in the business on 2 March 2021 even if that individual hadn’t already been furloughed. However, the employee must feature on an HMRC PAYE Real Time Information submission submitted by the employer between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee.
  • Employers can claim:
    • 80% of an employee’s usual wages (capped at £2,500 per month) for the time they are furloughed in May and June 2021
    • 70% of an employee’s usual wages (capped at £2,187.50 per month) for the time they are furloughed in July 2021
    • 60% of an employee’s usual wages (capped at £1,875 per month) for the time they are furloughed in August and September 2021
  • Employers cannot claim for any days spent by an employee who is serving contractual or statutory notice on or after 1 December 2020.
  • HMRC are, from December 2020, making public the names of those employers who make a claim with an indication of what has been claimed.
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