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Extension and changes to the Coronavirus Job Retention Scheme (CJRS)

Extension and changes to the Coronavirus Job Retention Scheme (CJRS)

April Foster

The Coronavirus Job Retention Scheme (CJRS) has now been extended until the end of September 2021.
 
From now until June 2021 the government continue to pay 80% of a furloughed employees wages for hours not worked up to a cap of £2,500.
 
For July 2021, CJRS will cover 70% at a cap of £2,187.50. This will then change during the periods of August 2021 and September 2021 where it will be reduced to 60% with a cap of up to £1,875.
 
As an employer, you will need to continue paying furloughed employees 80% of their wages up to the cap of £2,500 until the end of September, meaning that you must fund the difference between the CJRS grant and 80% yourself. You can choose to top up wages above 80% if you wish to do so.
 
You must also continue to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay from your own funds.
 
CJRS eligibility from May 2021 onwards
From 1 May 2021 onwards, you can claim for employees who had been employed by you and are on your PAYE payroll on 2 March 2021. You must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying HMRC of the earnings for the eligible employee.

You and your employees do not need to have benefitted from the scheme before to make a claim, as long as you meet the eligibility criteria.

For more information about the extension and to make a claim, click here to view the government guidance.