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CJRS update June 2020

Key changes to the Coronavirus Job Retention Scheme (CJRS) and dates you need to be aware of:

From 30th June 2020 the CJRS will be closed to anyone who hasn't already been furloughed for a minimum period of three weeks.  

If you plan to furlough employees who have not been furloughed previously - you'll need to make sure they are furloughed from 10th June 2020 to make sure they meet the three week minimum period before the end of June 2020. 

Employers will have until 31st July 2020 to make any claims relating periods up to 30 June 2020.

1st July  2020 Part-time working

From 1st July employers will have more flexibility. Employer's will be able to bring back previously furloughed employees part time and can decide the number of hours and shift patterns worked.  Employers will pay the full wages for the hours the employees do work but can still claim 80% grant for the normal hours the employee doesn't work (furloughed).  

From 1st July the maximum number of furloughed employees you can claim for cannot be more than the maximum  amount you have claimed in a previous period. 

1st August 2020 Employers start contributing

From 1st August employers will start contributing towards the wages costs of furloughed employees. This will be tapered from August through to October and has initially been outlined below, however full details of this will be published by HMRC on 12th June:

Timescale on scaling back CJRS

    
 Government contribution furloughed wages 
   Employer contribution furloughed wages 
  Who pays  Employers national insurance 
   Who pays
Employers Auto-enrollment  Statutory Pension contributions 
     June
   80%
 Capped £2,500
   -
   Govt
   Govt
     July
   80%
 Capped £2,500
   -
   Govt
   Govt
     August 
   80%
 Capped £2,500
   -
Employer 
   Employer 
     September
   70%
 Capped £2,187.50
 
   10%
 Total cap £2,500
   Employer 
   Employer 
     October
   60% wages
 Capped £1,875
 
   20%
 total cap £2,500
  
   Employer 
   Employer 
 

The cap on the furlough grant will be proportional to the hours not worked.

The Government have committed to releasing updated guidance on the 12/06/20.

Tags: Coronavirus, Cash Flow

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