Here we’ll talk you through all you need to know about the Job Retention Scheme

****THIS PAGE IS IN PROGRESS - MORE INFORMATION BEING ADDED AS IT BECOMES AVAILABLE.****

CJRS:

CJRS extension to 31st March 2021:

The Coronavirus Job retention scheme (CJRS or furlough scheme) was due to finish on the 31st October, however the Chancellor announced an extension to this. The scheme will now run until 31st March 2021.

Key points are as follows:

  • For claim periods to January 2021, the government will contribute 80% of an employees salary up to a cap of £2,500. Employers will be responsible for the Employers NI and pension contributions.

  • The government and employer contributions will be reviewed in January to assess if these contributions need to be amended.

  • Businesses do not need to have used the furlough scheme previously to use the extension.

  • To be eligible for furlough, employees must have been reported to HMRC on a submission made between 20th March 2020 and 30th October 2020.

  • Furloughed employees shouldn't do any work during their furloughed period, but flexible furlough is still possible.

  • The CJRS bonus scheme will no longer be paid in February due to the extension of the CJRS.


The claim portal opens on 20th April 2020.

Businesses will need to collate the following information:

  • The bank account number and sort code you’d like the claim paid to.

  • The name and phone number of the person for HMRC to contact with any questions.

  • Self-Assessment UTR (Unique Tax Reference), Company UTR or CRN (Company Registration Number).

  • For each furloughed employee:

    • Name

    • Employee Number

    • National Insurance number (NINO). It is not known how employees who do not need to have a NINO will be included.)

    • Salary, National Insurance and pension contribution information that allows business to calculate the claim amount.

Detailed information:

  1. Furloughed members of staff must not work for the employer during the period of furlough.

  2. Furlough is from 1 March 2020, so is to be backdated. It will last for at least 3 months and will be extended if necessary. Note that while the scheme is backdated to the beginning of March as it is intended to support all those employed then, a firm will only be eligible to claim the grant once they have agreed the furlough with their staff and staff have stopped working for the employer. This will of course be subject to employment law in the usual way.

  3. The scheme is available for employees on the payroll at 28 February 2020.

  4. All UK businesses are eligible, 'any employer in the country, small or large, charitable or non-profit' to use the Chancellor's words.

  5. The scheme pays a grant (not a loan) to the employer.

  6. The grant will be paid to the employer through a new online system which is being built for this purpose. This is due to be live on 20th April 2020 and businesses are being urged to prepare for their claim in advance of this date.

  7. The employer will pay the employee through payroll, and report payments to HMRC using the Real Time Information (RTI) system as usual, as required by the employment contract. This contract may be re-negotiated, but that is a matter for employment law.

  8. The scheme will be administered by HMRC:
    • Relevant employees must be designated as furloughed employees.
    • Employers will submit claims to HMRC through a new online portal.

  9. The maximum grant will be calculated per employee and is the lower of:
    • 80% of ‘an employee's regular wage’ and.
    • £2,500 per month.
    Plus the associated employers’ national insurance contributions (NIC) on this amount and the minimum automatic enrolment employer pension contributions on that wage.
    Fees, commission and bonuses should not be included.
    This gives a maximum cap of £2,500 +£245 (employers’ NIC) + £59 (auto- enrolled pension contribution) = £2,804 of total possible grant that can be applied for per employee per month.

Job Retention Scheme Bonus: THIS HAS NOW BEEN WITHDRAWN DUE TO THE CJRS EXTENSION.

The bonus will be:

  • a one-off payment of £1,000 per employee,

  • to UK employers,

  • for every furloughed employee who remains continuously employed through to 31 January 2021.

Employees must earn above the National Insurance lower earnings limit (£520 per month) on average between 31 October 2020 when the CJRS ends and the end of January 2021.

The bonus payments will be made from February 2021.