In October, there were changes to the Coronavirus Job Retention Scheme.
The Coronavirus Job Retention Scheme (CJRS), which sees the government contributing towards the wages of staff on furlough, entered a new phase on 1 October 2020.
The Government contribution will to fall from 70% to 60% of an employee's wages (up to a cap of £1,875.00 per month for the hours the employee is on furlough).
As the Government contribution to furlough payments falls, employers are required to top up employees’ wages to ensure they continue to receive 80% of their 'usual' wages up to a cap of £2,500 per month if they are on full-time furlough.
Employers also have to pay employer National Insurance Contributions (NICs) and employer pension contributions. This change was introduced on 1 August 2020.
October furlough changes
From 1 October, the government will pay 60% of an employee's usual wages. This will be up to a cap of £1,875.00 per month for the hours that furloughed employees do not work.
You will still need to pay your furloughed employees at least 80% of their usual wages for the hours they do not work. This will be up to a cap of £2,500 per month. You will need to fund the difference between this and the CJRS grant yourself.
The caps are proportional to the hours not worked. E.g. Your employee is furloughed for half of their usual hours in October. This means you are entitled to claim 60% of their usual wages for the hours they do not work (up to a maximum of £1,875.00).
You still have to pay furloughed employees’ National Insurance (NI) and pension contributions.
Information required from you in order to process your claim
In order to accurately process your claim, we need information from you. We advise that you do not share this with us until it is confirmed - but once you have finalised details, the sooner you can provide these to us, the better! We need to know:
Which employees are furloughed
The dates they have been on furlough
Whether they are on flexible furlough
The hours they have worked (or will work) in October
Whether the employee has taken any holiday during October, or is working their notice period
Making sure your data is accurate
It is important that you provide all the data HMRC need to process your claim. Payment of your grant can be at risk or delayed if you submit a claim that is incomplete or incorrect. We want to make sure you get this right the first time. Please get in touch with us for claim support if you are unsure.