Coronavirus Job Retention Scheme (CJRS)

The new national restrictions will apply from 5 November to 2 December 2020, but the financial support for employers applies from 1 November as the furlough scheme operates on full calendar months. As much information, as is available, is summarised below:

What support is given?

  • Furlough scheme has been reinstated with the similar conditions as applied in August 2020.
  • The grant will pay for 80% of the employee’s current wages for time not worked, up to £2,500 per month. (Current rates of pay are those that are in place now not under previous furlough claims).
  • The employer must pay for all of the employer’s NIC and employer’s minimum workplace pension contributions on those wages.
  • The employer can top-up the employee’s furlough pay at their own expense, if they wish to.

Which employees qualify?

  • Employees who were on the employer’s payroll at 30 October 2020 will qualify to be included in CJRS claim for November; they don’t have to have been included in an earlier CJRS claim.
  • The employee must have been paid by the employer, and that pay must have been reported on a RTI return before midnight on 30 October.
  • Employees on any type of contract can qualify, including zero hours, although more detail on whether contractors or directors are included is expected in the next few days.

Flexi furlough

  • Flexible furlough will be permitted alongside full-time furlough, so staff may be brought back part-time.
  • The same rules for flexible furlough will continue to apply as they have done since 1 July, so the employee may be furloughed for a few days or hours per week. There appears to be no minimum time set for furloughed hours or working hours.
  • Each furlough claim must be for a period of at least seven consecutive calendar days.

Which employers qualify?

  • All employers with a UK bank account can claim support under the extended CJRS, there is no financial test to pass for larger employers as applies for the (now postponed) JSS.
  • Charities and not-for-profit organisations can also claim in respect of their employees. However, public sector bodies and publicly funded organisations are not expected to use the scheme.

How to claim?

  • The claim process will be very similar to that which has applied so far under CJRS, the employer will have to report the hours the employee has not worked in a claim period, and the usual hours.
  • It is not yet clear whether the employee’s pay must be reported on an RTI return before the CJRS grant is submitted for November pay periods. Further details and legislation are expected to be published shortly.

Local grants

  • Where businesses have been required by law to close, they will be able to apply for a support grant from their English local authority, based on the rateable value of their business premises:
Rateable value of premises Grant payable per two weeks
Up to £15,000 £667
£15,001 to £50,999 £1000
£51,000 or more £1500

We are expecting news from both Hull City Council and East Riding Yorkshire Council on how to make the necessary claims and will keep everyone updated as soon as more details are released.

As per previous events, we are here to assist you all so please get in touch should you have any queries or need to understand the process for our support with the claims.

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