New Coronavirus Job Retention Scheme (CJRS) beginning November 2020.
Wednesday November 11, 2020
The furlough scheme continues but a number of changes have been put in place, the main changes highlighted below;
- CJRS has been extended to 31 March 2021 for all parts of the UK. From 1 November2020, the UK Government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month. The UK Government will review the policy in January.
- Employers and their employees do not need to have used the scheme before to claim for periods from 1 November 2020
You can claim for employees who were employed on 30 October 2020, as long as you have made a PAYE RTI submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee. This may differ where you have re-employed an employee after 23 September 2020.
- HMRC intend to publish details of employers who use the scheme for claim periods from December, and employees will be able to find out if their employer has claimed for them under the scheme.
- There are now monthly deadlines for claims. Claims for periods on/after 1 November 2020 must be submitted within 14 calendar days after the month they relate to, unless this falls on a weekend in which case the deadline is the next weekday. So, for claims relating to November 2020, your claim must have been processed and approved by HMRC on or before 14 December 2020
- The Job Retention Bonus will no longer be paid in February 2021 and an alternative retention incentive will be put in place at the appropriate time.
- The launch of the Job Support Scheme has also been postponed.
What you need to do now;
Submit any claims for periods up to 31 October on or before 30 November. Claims for periods up to 31 October will not be accepted after 30 November. Claims are subject to eligibility and the rules in force at the time.
Claims – for periods from 1 November 2020
- Agree working hours with your employees you wish to furlough for November and agree any changes to their employment contract.
- Submit any claims for periods from 1 November 2020 no later than 14 December 2020.
Employers will need to keep the records that support the amount of CJRS grant they claim, in case HMRC need to check it.