The Coronavirus Job Retention Scheme (the CJRS or Furlough Scheme) continues to wind down towards its closure at the end of October. From 1st September there are further changes for employers to be aware of.
- From 1st September employers can claim 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.
- Employers will still need to pay furloughed employees 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. Employers will need to fund the difference between this and the CJRS grant themselves.
- The caps are proportional to the hours not worked. For example, if an employee is furloughed for half their usual hours in September, employers are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
- Employers will continue to have to pay furloughed employees’ National Insurance (NI) and pension contributions from their own funds.
As mentioned before, HMRC are looking into the accuracy of claims made under this and the other Government support schemes. It’s essential that your claims are accurate and that you keep the records carefully.
If you’re concerned that a previous claim may have been wrong, you need to report this to HMRC quickly, as there is a restricted window to do so. More details can be found here.
As with any of the Coronavirus support schemes, if you have any questions please get in touch. We’re here to help you get through this in any way we can.