Changes to the Coronavirus Job Retention Scheme (CJRS) from 1 July 2020

From this point onwards, you will only be able to furlough employees that you have furloughed for a full three-week period prior to 30 June. This means that the final date by which you can furlough an employee for the first time will be 10 June, in order for the three-week furlough period to be completed by 30 June. 

 

In June - the government will continue to pay 80% of furlough pay up to a cap of £2,500 as well as employer National Insurance (ER NICs) and pension contributions. Employees are required to maintain a minimum period of furlough of 3 weeks. 

 

In July - flexible furloughing is introduced. The government will continue to pay 80% of furlough pay up to a cap of £2,500 as well as employer National Insurance (ER NICs) and pension contributions. However, from 1 July, you can ask furloughed employees to work on a part-time basis while remaining on furlough for the rest of the time. Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing. The employer can continue to make claims for the furloughed hours but the reporting of the claim must cover a minimum period of a week. You can choose to make claims for longer periods such as on monthly or two weekly cycles if you prefer. You will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked. 

 

In August - the government will continue to pay 80% of furlough pay up to a cap of £2,500 but employers will pay ER NICs and pension contributions if the wages are above the set thresholds. 

 

In September - the government will pay 70% of furlough pay to a cap of £2,187.50. The employer will be asked to contribute 10% of the furlough so that employees continue to receive the 80% minimum. 

 

In October - the government will pay 60% of furlough pay to a cap of £1,875. The employer will be asked to contribute 20% of the furlough so that employees continue to receive the 80% minimum. 

 

 

Further Guidance and support from HMRC - Further support on how to calculate claims with this extra flexibility will be available by 12 June, including webinars and detailed online guidance. 

 

 

Please contact your usual Chart Accountancy contact if you are claiming or want to claim under the Coronavirus Job Retention Scheme (CJRS). 

If you are making a claim for a first time, please contact us by latest Monday 8th June. This deadline is important if you are to organise a claim in time before the scheme is closed for new entrants from 30th June.