Following Chancellor Sunak’s announcement and the issuing of HMRC information late last night there will be a number of changes to the Coronavirus Job Retention Scheme (CJRS) as highlighted below. The only caveat to the information provided is that, at the time of this blog, we are still awaiting updates to the Treasury Direction and Employer’s Guidance and the devil is always in the detail!!. The muted changes are:

 

  • 10 June 2020 is the last date an employee can be put on Furlough for the first time;
  • In June and July the Government will continue to  reimburse  80% of wages up to a cap of £2,500 as well as Employer National Insurance and Pension Contributions (capped) for the hours the employee does not work;
  • From 1 July 2020 an employee will be allowed to work part time and be furloughed for part time. The Government will continue to reimburse up to 80% of wages for any of their normal hours they do not work up to the end of August;
  • From 1 August 2020, the Government will continue to reimburse 80% of wages subject to a cap of £2,500 but Employers will pay the Employer National Insurance and Pension Contributions;
  • From 1 September 2020, the Government will reimburse 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay Employer National Insurance Contributions, Pension Contributions and 10% of wages to make up 80% of the total up to a cap of £2,500 (or more, depending on what the Employer agreed with the employee);
  • From 1 October, the Government will reimburse 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay Employer National Insurance Contributions, Pension Contributions and 20% of wages to make up 80% of the total up to a cap of £2,500 (or more, depending on what the Employer agreed with the employee);
  • The cap on the furlough grant will be proportional to the hours not worked.
  • On 31 October 2020 the CJRS will close.

 

 

On another note the self-employed grant is to be extended. Applications will open in August for a second and final grant.