Coronavirus job retention scheme – key future dates

The Coronavirus job retention scheme is due to finish on 31 October and there are a number of key dates that you should be aware of over the wind down period:

• 1‌‌‌ ‌August 2020 - from this date the scheme will no longer fund Employers’ National Insurance and pensions contributions for furloughed employees.
• 1‌‌‌ ‌September 2020 - businesses are required to start contributing to the wages of furloughed employees.  Grants will be for 70% of wages but furloughed employees are entitled to receive at least 80% of their wage, subject to the £2,500 cap.
• 1‌‌‌ ‌October 2020 - grants will be for 60% of usual wages in October but furloughed employees will continue to be entitled to receive at least 80% of their salary.
• 31 October 2020 - the scheme closes

From 1 September the government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough.  Employers will top up employees’ wages to ensure they receive 80% (up to £2,500).  The caps are proportional to the hours not worked.

Unless you’re making a new claim for an employee who is a military reservist or is returning from statutory parental leave, you can only continue to claim through the scheme if:

• you have previously furloughed the employee for 3 consecutive weeks between March 1 and 30 June 2020
• you submitted your claim before 31 July

How to make a claim

You’ll need the business’ Government Gateway user ID and password you got when you registered for PAYE online.  If you do not finish your claim in one session, you can save a draft. You must complete your claim within 7 days of starting it.

If you want to delete a claim in the online service, you must do this within 72 hours of starting it.

To claim use the link located on this government link

https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

Claim errors

If you think you claimed too much, you can let HMRC know on  your next online claim.  If you have made an error and do not plan to submit further claims, or you have claimed less than you are entitled, you can contact HMRC directly to resolve the issue.

HMRC is contacting a number of employers to check that they have claimed the correct amount and has announced that there will be prosecutions for those who are fraudulently using the scheme.

If you have any concerns about this please contact your Swindells partner using the contact details here:

Job Retention Bonus

The Job Retention Bonus is a one off payment to employers of £1,000 for every employee for whom they have previously claimed under the scheme, and who remains continuously employed through to 31 January 2021.  Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.

You can find more information here:

https://www.gov.uk/government/publications/job-retention-bonus/job-retention-bonus

If you have any concerns or questions regarding the CJRS or Job Retention Bonus please do get in touch with your Swindells partner who will be able to advise you further.

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