Update on Red Keyboard Button Enter on Black Computer Keyboard.-1

The UK's Job Retention Scheme will finish at the end of October

From 1 July, under the Coronavirus Job Retention Scheme, businesses will be given the flexibility to bring furloughed employees back part time, a month earlier than previously announced.

In summary:

  • Claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees.

  • The scheme will close to new entrants on 30 June, with the last three-week furloughs before that point commencing on 10 June.

  • Individual firms will decide the hours and shift patterns their employees will work on their return and will be responsible for paying their wages while in work.

From August 2020, the level of government grant provided through the job retention scheme will be tapered, with employers’ contributions increasing, to reflect that people will be returning to work.

  • In June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (NICS) and pension contributions. Employers are not required to pay anything.

  • In August, government payments remain as before, but employers will be required to pay employer NICS and pension contributions. Government analysis indicates that for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.

  • In September, the government’s contribution to furlough wages will fall to 70%, up to a cap of £2,187.50. Employers will pay employers NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.

  • In October, the government furlough contribution falls to 60% of wages up to a cap of £1,875. Employers will pay employer NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

Important dates to note:

10 June 2020

Final date by which an employer can furlough an employee for the first time (furlough is a minimum period of three weeks)

12 June 2020

Further guidance to be published

30 June 2020

CJRS closed to new entrants

1 July 2020

Only employees who have been furloughed previously, for a period of three weeks, can be claimed for from this date

1 July 2020

Furloughed employees can be brought back to work with CJRS being claimed for the hours not being worked

1 July 2020

Claim periods will be limited to months, no overlapping months will be permitted

1 July 2020

Employers will be able to claim under the new scheme

31 July 2020

Final date for employers to make claims for the period to 30 June 2020

Full details of this scheme can be found on the follow Government website

How Hentons can help?
  • As an authorised agent, we can act on your behalf for any Job Retention Claim. If we already manage your businesses payroll, we will already hold all the relevant information needed for your claim. So as long we are engaged to do so, we will be able to help in your claim.

  • If we currently don’t manage your payroll, we can still deal with this for you.

  • Also, why not speak to us today, to see if we can help your business by managing your payroll on your behalf.
Contact us today

We are here to help our clients, so for all Job Retention Scheme queries, including Payroll please email Jess Haunch.

We hope you keep safe and healthy.