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Retention Scheme and Payroll Support

The Coronavirus Job Retention Scheme is a government grant to reimburse employers for 80% of furloughed workers net wage to a maximum of £2,500 per month + Employers NI and Pension Contributions.  To access the scheme employers need to designate affected workers as “furloughed workers”.

Flexible Furlough From 1st July Under Revised CJRS

From 1st July 2020, the Coronavirus Job Retention Scheme (CJRS) will allow part-time working, with employers paying employees for the hours worked, with the balance of hours being eligible for the CJRS claim. However, staff must have been furloughed by 10th June 2020 to be eligible to be included claims from 1 July 2020. When making a CJRS claim for periods from 1 July 2020 employers will need to provide details of the hours each employee has worked and the balance of hours subject to the CJRS claim.

The proposed changes also introduce a new limit to the number of staff who can be included on a claim. This will be based on the maximum staff ever included in any single pre 1st July claim.

HMRC have also confirmed the deadline for making CRJS claims for furlough periods to 30 June 2020 is 31 July 2020.

From 1 August 2020 employers will start to contribute towards the cost of an employees furloughed wages and the amount will increase each month until the scheme ends on 31 October 2020. The total amount payable to an employee will remain the same (ie 80% of salary up to a maximum of £2,500 per month) An outline of the employer contribution is as follows;

From 1 August 2020 employers will pay the cost of the employer national insurance contributions and pension contributions.

From 1 September 2020 employers will also pay 10% of the furloughed wages with the government paying the remaining 70%

From 1 October 2020, this will increase to 20% of furloughed wages with the government paying the remaining 60%

The scheme will then close on 31 October 2020

Further details of the scheme can be found at here


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