The coronavirus job retention scheme (CJRS) was due to end on 30 April 2021, but the Chancellor has extended this scheme in its current form until 30 June 2021. Employers will be able to claim 80% of the employee’s usual wages for periods for which the employee is furloughed.
Under revised furlough scheme (CJRS-4), from 1 July 2021 the employer must continue to pay furloughed staff 80% of their normal wages, but will only be able to claim 70% of the wage cost from HMRC. For pay periods from 1 August 2021 the employer will be able to claim only 60% of the employee’s wages, see table:
| Furlough periods within: | 1 Nov 2020 to 30 June 2021 | 1 – 21 July 2021 | 1 August – 30 September 2021 |
|---|---|---|---|
| Employee wages covered grant | 80% of usual | 70% of usual | 60% of usual |
| Max wages in clim per month | £2,5000 | £2,187.50 | £1,875 |
| Employer must pay amount of furlough wages per month: | ____ | 10% of usual up to £312.50 | 20% of usual up to £625 |
| Employee should receive at least per month for furloughed periods | 80% of usual up to £2,5000 | 80% of usual up to £2,500 | 80% of usual up to £2,500 |
The amount of the CJRS claim will continue to be capped at £2,500 per employee per month for pay periods up until 30 June, but from that point it reduces. The employer must pay all of the employer’s class 1 NIC and any employer’s pension contributions due on those furloughed wages. The employee must also continue to receive at least 80% of their normal pay for all periods they are furloughed.
Employees can be on flexible furlough, so working part of the week or month and be on furlough for the rest of their normal working hours.
The deadline for submitting CJRS claims will continue to be 14th of the following month, unless the 14th falls on a weekend, as it does for March, when the deadline is 15 March.
Written by the Tax Advice Network