The existing CJRS furlough scheme has been updated many times since its introduction. Earlier this year, it was extended to cover the second National lockdown period, and most recently Rishi Sunak announced that the scheme will be extended to 30 April 2021.
The Job Support Scheme (which was due to come into effect from 1 November) will be postponed until the furlough extension ends, with further updates expected on the timing in due course.
This is welcome news as the existing furlough scheme is more widely understood, and there are existing processes in place to deal with claims.
The headlines of the latest extension to the scheme are:
- Employers and employees do not need to have made a previous CJRS claim to qualify
- Employees must be on a payroll notified to HMRC by 23.59 on 30th October 2020.
- The grant will be based on the “August rules”, and will cover 80% of wages for hours not worked, capped at £2,500 per month. Employer’s will be liable for pension contributions and NIC.
- A claim must cover a minimum of 7 days
- Workers can be on full time furlough, or flexi furlough (where they work part of their usual hours).
Additional guidance is expected to confirm when the first grants can be processed, but we expect the whole process to be the same as the existing furlough claims, up to 31 October 2020.
It is still anticipated that the Job Support Scheme will eventually replace the CJRS, and we will update our website in due course, so please keep an eye on our COVID-19 Hub.
Please do not hesitate to get in touch with your normal Shorts contact to talk any of the above through in more detail.
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