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Upcoming changes to the Coronavirus Job Retention Scheme

Upcoming changes to the Coronavirus Job Retention Scheme

April Foster

Changes from May 2021
 
Eligibility
Employees who were previously ineligible for CJRS as they were not on the payroll submission (RTI) before 30 October 2020 may now be eligible for periods from 1 May 2021 onwards.
 
From May 2021, you will be able to claim for eligible employees who were included on the payroll submission (RTI) before 2 March 2021. This means that you will need to have made a PAYE Real Time Information (RTI) submission between 20 March 2020 and 2 March 2021 to notify HMRC of the earnings of the eligible employees.
 
Variable pay
From 1 May 2021 onwards when calculating the average wages for employees who are not on a fixed salary, you should no longer include the following periods:
 
  • statutory sick pay related leave
  • family related statutory leave
  • reduced rate paid leave following a period of statutory sick pay or family related leave.
N.B. If an employee is on one of these types of leave throughout the entire period to calculate their average wages, the days related to the leave should be counted.
 
Changes from July 2021
From 1 July 2021 onwards the level of grant will be reduced, and employers will be asked to contribute towards furloughed staff wages. In order to be eligible for the grant, you must continue to pay furloughed staff members 80% of their wages, up to a cap of £2,500 per month.
 
If you wish to do so, you can choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.
 
The table below shows examples of the level of government contribution available in the coming months, the required employer contribution, and the amount that the employee receives per month where the employee is furloughed 100% of the time.














For further advice on any of the information in this article, please contact your usual Moore adviser.