As one of the first measures announced by the UK Government to support businesses, the Coronavirus Job Retention Scheme (CJRS) funding for furloughed employees has been accessed for circa 9 million workers.
All employers with a UK, Isle of Man or Channel Island bank account and UK PAYE schemes can claim the grant. You do not need to have previously claimed for an employee to claim now.
Employers can now furlough employees for any amount of time and any work pattern, while still being able to claim the grant for the hours not worked.
- Claims for furlough days in March 2021 must be submitted by 14 April 2021
You will need to pay for employer NICs and pension costs. Find out more information on employer contributions to the Coronavirus Job Retention Scheme.
HMRC: Changes To The Job Retention Scheme
The Coronavirus Job Retention Scheme has been extended until 30th September 2021 with assurances now made that the level of grant available to employers under the scheme will stay the same until 30th June 2021.
Changes to the level of grant from 1st July 2021
From 1st July 2021, the level of grant will be reduced and you will be asked to contribute towards the cost of your furloughed employees’ wages. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
You can continue to choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.
The table below shows the level of government contribution available in the coming months, the required employer contribution and the amount that the employee receives per month where the employee is furloughed 100% of the time.
Wage caps are proportional to the hours not worked.
| May | June | July | August | September | |
|---|---|---|---|---|---|
| Government contribution: wages for hours not worked | 80% up to £2,500 | 80% up to £2,500 | 70% up to £2,187.50 | 60% up to £1,875 | 60% up to £1,875 |
| Employer contribution: employer National Insurance contributions and pension contributions | Yes | Yes | Yes | Yes | Yes |
| Employer contribution wages for hours not worked | No | No | 10% up to £312.50 | 20% up to £625 | 20% up to £625 |
| For hours not worked employee receives | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month |
You can continue to choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.
We know that keeping up with the various changes to the Coronavirus Job Retention Scheme, and ensuring that you’re using flexible furloughing to support your business is a job in itself. The most up to date information can be found on the government website Coronavirus Job Retention Scheme page.