CHANCELLOR reveals details on how the Coronavirus Job Retention Scheme will operate from now until the end of October 2020 says Tom Scaife of Baines Wilson LLP.
On Friday 29 May 2020, the government confirmed that the Coronavirus Job Retention Scheme will continue to support jobs and business as people return to work, following the announcement of an extension of the scheme on 12 May 2020.
From 1 July 2020, businesses will have the flexibility to bring furloughed employees back part time. Individual firms will decide the hours and shift patterns the returning employees will work on their return and will be responsible for paying their wages while in work.
- From 1 August 2020, the level of government grant provided through the CJRS will be slowly tapered, with businesses being asked to contribute. This will work as follows:
- For June and July 2020, the government will continue to pay 80% of wages (up to a cap of £2,500) as well as employer National Insurance and pension contributions.
- In August 2020, the government will pay 80% of wages (up to a cap of £2,500) with employers paying employer National Insurance and pension contributions.
- In September 2020, the government will pay 70% of wages (up to a cap of £2,187.50) with employers paying employer National Insurance, pensions contributions and 10% of wages to make up 80% total (up to a cap of £2,500).
- In October 2020, the government will pay 60% of wages (up to a cap of £1,875) with employers paying employer National Insurance, pension contributions and 20% of wages to make up 80% total (up to a cap of £2,500).
- Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and the actual hours that employee has worked.
Claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees. The scheme will close to new entrants on 30 June 2020, with the last three-week furloughs before that point commencing by 10 June 2020.
For further details, the full announcement can be found at: https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps
If you have any queries in relation to the impact COVID-19 is having on your employees or wider business, please contact us on 01228 552600 or 015242 548494.
