Furlough Update – Upcoming Actions You May Need To Take

Dylan Loughlin

Key dates for the Coronavirus Job Retention Scheme (CJRS) and actions you might need to take;

  • Submit your CJRS claim for periods ending on or before 30‌‌‌ ‌June 2020 by 31‌‌‌ ‌July 2020. This is the last date you can make those claims. You need to have made a claim at any point on or before 31‌‌‌ ‌July to be able to make a claim for future months.
  • From 1‌‌‌ ‌August 2020 the scheme will no longer fund employers’ National Insurance (NI) and pensions contributions for furloughed employees. You will have to make these payments from your own resources.
  • From 1‌‌‌ ‌September 2020 you will have to start contributing to the wages of your furloughed employees. Grants will be for 70% of usual wages in September and 60% in October, but furloughed employees will continue to be entitled to receive at least 80% of their usual wages. You will have to make up the difference from your own resources.

Make sure your data is right

It’s important that you provide the data HMRC needs to process your claim. Payment of your grant may be at risk or delayed if you submit a claim that is incomplete or incorrect.

If you are claiming for 100 or more employees, please use our standard template to submit your employees’ details. It is important that you submit the correct data (including National Insurance numbers) in the correct format.

You can find this template by searching ‘Job Retention Scheme template download’ on GOV‌‌‌‌.UK.

More information about the Job Retention Bonus

HMRC notified us about the introduction of the Job Retention Bonus – a one-off payment of £1,000 to employers who have claimed under CJRS for each furloughed employee who remains continuously employed until at least 31‌‌‌ ‌January 2021.

More information about this scheme will be available on 31‌‌‌ ‌July.

Incorrect claims CJRS grants are to cover the costs of your furloughed employees’ wages (and related payroll taxes, National Insurance and pension contributions until 31‌‌‌ ‌July). HMRC may withhold or recover grants if they are claimed based on dishonest or inaccurate information. Key Pointers

  • Notice can be claimed from the CJRS (80%), if the employee works or is on furlough for their notice period (they should be paid at 100%)
  • Redundancy payments cannot be claimed back 
  • If you are making 20 or more employees redundant you must submit an HR! form to the DfE
  • When proposing redundancies with us please include length of service, date of birth, job roles and an organization chart (if possible)
  • For flexible furlough, you claim 80% of normal hours not worked and pay 100% of actual hours worked

The best way to keep up with the changes to the Furlough Scheme is by subscribing to our newsletter. You can also contact us anytime with specific queries.