The Coronavirus Job Retention Scheme (CJRS) was launched in April 2020 to allow UK businesses access financial support to continue paying part of their employees’ salary.
The Coronavirus Job Retention Scheme ended on 30 September 2021.
How does the scheme work?
This scheme applies to any employee who is furloughed by reason of circumstances as a result of coronavirus. These repayments are a grant, not a loan. The extended scheme will operate as the CJRS did during August 2020, which offered the following support:
- Up until July 2021 the government will pay 80% of wages up to a cap of £2,500 and employers will pay employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work.
- From July 2021 until September 2021 the proportion of government grant be reduced as per the table below. To be eligible for the grant, employers must increase their contribution for hours not worked to ensure employees are paid 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
|Government contribution: wages for hours not worked||80% up to £2,500||70% up to £2,187.50||60% up to £1,875||60% up to £1,875|
|Employer National Insurance contributions and pension contributions||Yes||Yes||Yes||Yes|
|Employer contribution wages for hours not worked||None||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|
- Flexible furloughing will be allowed in addition to full-time furloughing.
Claims from 1st November 2020 must be submitted by 11:59pm 14 calendar days after the month you are claiming for. See table below:
|Furlough period||Deadline for claim submission|
|November 2020||14th December 2020|
|December 2020||14th January 2021|
|January 2021||15th February 2021|
|February 2021||15th March 2021|
|March 2021||14th April 2021|
|April 2021||14th May 2021|
|May 2021||14th June 2021|
|June 2021||14th July 2021|
|July 2021||16th August 2021|
|August 2021||14th September 2021|
|September 2021||14th October 2021|
Please note: HMRC may accept claims made after a deadline, providing there is a reasonable excuse. A list of reasons for failing to meet deadlines may be reviewed here
Who is eligible?
- Under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020.
- Employees can be on any type of contract.
- Employers can claim the grant for the hours their employees are not working, calculated by reference to their usual hours worked in a claim period. Such calculations will broadly follow the same methodology as currently under the CJRS.
What are the terms?
- When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.
- Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
- For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts.
- Employers cannot claim for any furlough days after 1st December 2020 if employees are serving contractual or statutory notice
To make a claim you will need the following
- must be registered for PAYE online. You can register using this link
- The full amounts you are claiming for
- Number of employees being furloughed
Do staff need to be notified?
Yes. Any new working arrangements will need to be agreed with staff in advance, including changes to employment contracts and prior notification to the employee in writing.
External links for further information: