As of November 1st 2020, a new scheme called the Job Support Scheme replaces the Coronavirus Job Retention Scheme (CJRS). This scheme will run until April 2021.
Under the Job Support Scheme, the Government will pay a third of hours not worked up to a cap of £697.92 a month and the employer will also contribute a third. All employers with a UK bank account and UK PAYE scheme are eligible for the grant. You do not need to have previously used the Coronavirus Job Retention Scheme.
All employees must have been on the employers payroll on or before the 23rd September 2020. For the first 3 months of the scheme (November to January) the employee must work at least 33% of their usual hours. After 3 months the Government will consider an increase to minimum hours worked.
Employees will be able to cycle on and off the scheme and the working pattern can be different each month but each short time working arrangement must cover a period of at least seven days.
The grant does not cover employer class 1 NICS or pensions contributions – these still need to be paid by the employer. Employees previously on CJRS will have their underlying usual pay/hours used for calculations NOT the amount they were paid on furlough.
Employers must pay employees their contracted wages for hours worked and the government and employer contributions for hours not worked. The governments expectation is that employers cannot top up their employees wages above the two-thirds contribution to hours not worked at their own expense.
Employees cannot be made redundant or put on notice of redundancy during the period that the employer is claiming the grant for.
Employers must agree the new short time working arrangements with their staff, make any changes to the employment contract by agreement and notify the employee in writing. HMRC can request copies of these agreements. An example of how the scheme works can be found here.
Should you have any queries or questions, then please do not hesitate to contact our team on 01823 653250, or via email firstname.lastname@example.org.
HMRC has released the latest statistics for the value of Research and Development Tax Credits covering 2018-19 so far, and with £5.3 billion claimed already, it highlights the biggest boost to innova…
As of November 1st 2020, a new scheme called the Job Support Scheme replaces the Coronavirus Job Retention Scheme (CJRS). This scheme will run until April 2021. Under the Job Support Scheme, the Gover…