COVID-19 update – Furlough Extension
Posted on 13th November 2020 at 09:46
The Chancellor has announced a five month extension of the furlough scheme into Spring 2021. The Coronavirus Job Retention Scheme (CJRS) will now run until the 31st March, whereby employees will receive 80% of their current salary for hours not worked. The increased measures implemented by the government is to allow time for businesses to recover and get back on their feet and in the attempt to boost business confidence.
Currently there are no employer contribution to wages for hours not worked. Employers will be asked to cover the National Insurance and employer pension contributions only for those hours not worked. On an average claim, this accounts for 5% of total employment costs. The CJRS extension is to be reviewed in January to examine whether the economic circumstances have improved enough, and it is expected employers will to be asked to increase their contributions.
The extended CJRS will operate the same as the previous scheme, and businesses will be able to claim either shortly before, during or after running the payroll. Claims can be made from Wednesday 11th November. The 30th November 2020 is the last day that employers can submit or change claims for periods ending on or before the 31st October. Claims made from the 1st November must be submitted to HMRC by no later than the 14th December. Claims relating to each subsequent month thereafter, should be submitted by day fourteen of each following month. This is to ensure prompt claims following the end of the month for which the claim was made.
Neither the employer nor the employee needs to have previously claimed / or been claimed for under CJRS in order to make a claim under the extended CJRS (assuming all other eligibility criteria are met). Employers can claim for employees who were employed and on their PAYE payroll on the 30th October 2020 (employers must have made a PAYE Real Time Information submission to HMRC between the 20th March and the 30th October, notifying a payment of earnings for that employee).
For employees that are re-employed and on PAYE on the 23rd September 2020, who were made redundant or had stopped working, a claim for those employees can be made by employers, but must have made a PAYE Real Time Information submission to HMRC from between the 20th March and the 23rd September, notifying a payment of earnings for that employee.
For further details, including making a claim – please visit the government website HERE…
Here to help you at GM&Co
If you are at all worried about your business, please call us for an empathetic chat and assistance in understanding in what is available and how to gain access. (We are regularly monitoring to keep our clients fully informed and up to date, as and when the detail is available from the government). Please call us on 0121 550 8509 or email email@example.com.
Whilst every effort in ensuring the accuracy of the content of these notes has been considered, we cannot be held responsible in any way in regards to any consequences and/or decisions arising from the information provided. For specialist advice tailored to your individual circumstances – please seek professional advice and contact us on the above details.
Wishing you safe and well from the team at GM&Co
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