‘You say goodbye……..I say hello!


Just when we thought we were saying goodbye to the Furlough Scheme (CJRS) a last minute change from the UK Government sees its extension for a further month.


Whilst we await additional guidance, the main reported highlights thus far are:


  • The new extended Job Retention Scheme will enable Employers to bring furloughed employees back to work on a part time basis or furlough them full time;
  • The Employer will only be asked to cover the National Insurance and pension contributions with the Government paying 80% of wages up to a cap of £2,500 (similar to how the scheme was in August 2020);
  • All Employers with a UK bank account and UK PAYE scheme can claim the grant;
  • To be eligible employees must be on an Employer’s PAYE payroll by 23.59 on 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020;
  • Employees can be on any type of contract and will be able to agree any working arrangements with employees;
  • Employers can claim the grant for the hours their employees are not working. The calculation reference periods are expected to be broadly similar to the methodology as used under the old CJRS scheme;
  • Employers will need to report hours worked and the usual hours an employee would be expected to work in any claim period.  A claim will be for a minimum period of 7 consecutive calendar days;
  • For worked hours employees will be paid by the Employer in the normal way and such amounts will be subject to NIC and tax;
  • As with the old CJRS Scheme Employers are still able to top an employee’s wages above the scheme grant at their own expense.