The Coronavirus Job Retention Scheme is expected to formally wind down
The Government’s Coronavirus / Covid-19 Job Retention Scheme is expected to formally wind down from July as lockdown measures are eased.
Over the last few months, I’ve spoken to hundreds of business owners who are keen to make sure they get the appropriate support during these unprecedented times. One of the most common questions I am asked is around the Coronavirus / Covid-19 Job Retention Scheme.
Here’s what you need to know, but please get in touch as it is vitally important to get it right.
Business owners will need to have a plan in place to prepare them for reducing the current wage subsidy gradually and The Coronavirus Job Retention Scheme will close on 31st October 2020. From 1st July 2020 employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.
Furlough Government contribution: Employer NICs and pension contributions – Will pay only up to July 2020. From 1st August 2020 the employer will have to pay
Furlough Government Contribution Wages (CJRS):
80% up to a cap of £2,500 in July and August 2020
70% up to a cap of £2,187.50 in September 2020
60% up to a cap of £1,875 in October 2020
Furlough Employer Contribution Wages (CJRS):
10% up to a cap of £312.50 in September 2020
20% up to a cap of £625 in October 2020
The above percentages show Government contribution required employer contributions and amount the employee receives where they are furloughed 100% of the time. Wage caps are proportional to the hours not worked.
If you have staff who are furloughed, and are unsure what to do next, it is essential that you take proper advice. If you don’t currently have an adviser, I’m more than happy to help.