Coronavirus Job Retention Scheme (CJRS) Update

The chancellor has released an outline of the proposed changes to the CJRS.

This is a brief overview of the changes, the government’s detailed factsheet is available

HERE

The main change is the ability to part-time furlough from 1^st July 2020.

These changes have some complex qualifying criteria, so please read them carefully:

• The CJRS scheme will effectively close to new entrants from 10 June 2020. 
• From 1 July 2020 employers can bring back employees to work part-time.
• Any claim under CJRS will be limited to normal hours not worked.
• For June and July 2020 the government will continue to pay 80% of costs up to the £2,500 cap
• From 1^st August 2020 the government will pay 80% of wages up to the £2,500 cap, but employers will have to cover employer NIC and pension costs for the hours the employee does not work.
• From 1^st September 2020 the government will pay 70% of wages up to a reduced £2,187.50 cap. Employers will pay employer NIC, pension costs and 10% of wages to a total cap of £2,500.
• October 2020 -  government will pay 60% of wages up to a reduced £1,875 cap. Employers will pay employers’ NIC, pension costs and 20% of wages to a total cap of £2,500.
• The cap will be proportional to hours not worked.

It is fair to say that the new rules are more complicated than the old rules, because of the mix of furlough pay and normal pay at the same time. It will be important to keep careful records of working hours and furlough hours throughout this period.

Please feel free to share this information as widely as possible and encourage people, who might benefit from these updates, to register at

 www.asquithand.co.uk 

for future updates.

This information is provided free of charge and in good faith, without acceptance of any future liability arising from any action or in-action by any recipient or reader.

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