HMRC have announced changes to the furlough scheme currently in place, to keep you up to date with these changes we have listed below HMRC’s key points to the Coronavirus Job retention Scheme (CJRS):-
- From the 1st July 2020 employers will be able to bring previously furloughed employees back part time, the government will continue to pay 80% of wages for any of their normal hours they do not work, up until the end of August 2020.
Employers will decide the hours and shift patterns their employees will work on their return and will be responsible for paying their wages in full while working. This will enable the employees to work as many or as little hours that the business needs with no minimum time that they can be furloughed.
Any working hour arrangements agreed between a business and their employees must cover at least one week and be confirmed to the employee in writing. When claiming the CJRS grant furlough hours, they will need to report and claim for a minimum period of a week but can claim for longer periods such as a month if preferred. Employers are required to submit data on the usual hours and employee would be expected to work in a claim period and actual hours worked.
- From 1st August 2020 the CJRS will slowly taper out.
June – July, the government will pay 80% of wages up to a cap of £2,500 as well as the employers NI and pension contributions for the hours the employee doesn’t work. Employers will pay the employees for any hours they do work.
August, the government will continue to pay the 80% of the wages up to the cap of £2,500 but the employers will now be responsible for paying the employers NI and the pension contributions.
September, the government will pay 70% of the wages up to a cap of £2,187.50 for the hours the employee does not work – employers will be responsible for the employers NI and pension contributions.
October, the government will pay 60% of the wages up to a cap of £1,875 for the hours the employee does not work – employers will be responsible for the employers NI and pension contributions.
- The scheme will be closed for new entrants from the 30th June 2020, employers will only be able to furlough employees that have been furloughed for a full three weeks period prior to the 30th This means that the final date that an employer can furlough an employee for the first time is the 10th June for the current three-week furlough period to be completed by the 30th June. Employers will have until the 31 July to make any claims in respect of the period to the 30th June.