There have been various changes and announcements regarding the Coronavirus Job Retention Scheme (CJRS), here is the key information to remember for your business.
31st July 2020 is the final date for employers to make claims for the period ending on or before 30th June.
From 1st August 2020 employers must pay employer NICs and pension contributions for furloughed employees. Employers must pay employees for any hours worked, plus NICs and pension payments in the usual way.
Starting 1st September 2020 the government will reimburse 70 percent of wages up to £2,187.50 per month for the hours that the employee does not work. Employers must pay 10 percent towards the salary to ensure employees still receive 80 percent of their salary up to a cap of £2,500 per month, plus employers’ NICs and pension contributions.
From 1st October 2020 the government will reimburse 60 percent of wages, subject to a cap of £1,875 per month for the hours the employee does not work. Employers must pay 20 percent towards the salary to ensure employees still receive 80 percent of their salary up to a cap of £2,500, plus employers’ NICs and pension contributions.
Live webinars and YouTube videos are available to support businesses through the changes to the scheme and new guidelines. Visit the GOV.UK website here for the sessions and recorded videos.
Job Retention Bonus
The UK government revealed a new incentive scheme for employers to help retain employees on furlough. The Chancellor, Rishi Sunak announced employers who bring someone back who was furloughed and continues to employ them between November 2020 (end of the CJRS) and January 2021 , the government will award a £1,000 bonus for each worker.
Employees must earn at least the lower earning limit for national insurance (£520 per month) between November and January in order for employers to be eligible for the pay-out. The bonus will be paid from February 2021 and we expect more information on this scheme to be published shortly.
The government also announced that it will make a payment to employers in England for each new apprentice they hire from 1 August 2020 to 31 January 2021. The payment of £2,000 for each new apprentice aged under 25 and £1,500 for each new apprentice aged 25 and over, will be in addition to the existing £1,000 payment the government already provides for new 16-18 year old apprentices.
You can view a detailed guide – A plan for jobs 2020 here.
Protect yourself from scams
There has been an increase in the number of scams and security concerns being reported, many in relation to the CJRS and malicious attempts to scam employers. If you are unsure of any communications, forward it to HMRC and then delete it. If you are in doubt about the source of one of these messages, forward it to HMRC. You can do this via email at firstname.lastname@example.org or via text at 60599 (network charges apply). Additionally, the National Cyber Security Centre has recently launched a reporting service urging the public to forward any questionable emails to email@example.com. The NCSC’s automated scanning system then checks them, and immediately shuts down and removes criminal sites.
Our partners have been actively supporting businesses through the Coronavirus crisis and helping employers navigate the various challenges of managing staff. If you would like help for your organisation, please get in touch on 01942 816 512.