In September, the Coronavirus Job Retention Scheme (including furlough support) changed. Here's everything you need to know.
The Government’s Coronavirus Job Retention Scheme (CJRS), which pays towards the wages of staff on furlough during the pandemic, entered a new phase on 1 September 2020.
The Government contribution fell from 80% to 70% of an employee's wages (up to a cap of £2,187.50 per month for the hours the employee is on furlough). The rules allowed for employees to be brought back on a part-time basis, with employers paying their wages for the hours worked.
As the Government contribution to furlough payments fell, employers were required to top up employees’ wages to ensure they continued to receive 80% of their 'usual' wages up to a cap of £2,500 per month if they were on full-time furlough.
Employers also had to pay employer National Insurance Contributions (NICs) and employer pension contributions. This change was introduced on 1 August 2020.
From 1 September, the Coronavirus Job Retention Scheme (CJRS) paid 70% of usual wages. This was up to a cap of £2,187.50 per month for the hours that furloughed employees did not work.
You still needed to pay your furloughed employees at least 80% of their usual wages for the hours they did not work. This was up to a cap of £2,500 per month. You needed to fund the difference between this and the CJRS grant yourself.
The caps are proportional to the hours not worked. E.g. Your employee was furloughed for half of their usual hours in September. This means you were entitled to claim 70% of their usual wages for the hours they did not work (up to £1,093.75).
You still had to pay furloughed employees’ National Insurance (NI) and pension contributions.
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.