Coronavirus Job Retention Scheme (CJRS)
This is a temporary scheme set up by the Government starting from 1 March 2020, and currently in place until October 2020. Employers can use this scheme anytime during this period.
If you cannot maintain your current workforce because your operations have been severely affected by coronavirus (COVID-19), you can furlough employees and apply for a grant that currently covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay.
The scheme opened on 20 April for claims. You will receive payment six working days after making an application.
General information about the scheme:
• To be eligible for CJRS an employer must agree with the employee that they are a ‘furloughed worker’.
• Employees must be notified that they have been furloughed.
• Employees must be furloughed for a minimum of three weeks.
• The employee cannot do any work for the employer that has furloughed them.
• You can currently claim 80% of wages up to a maximum of £2,500 per month per furloughed employee.
• A separate claim is needed for each PAYE scheme.
• You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020.
• An RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020.
• You must have a UK bank account.
• The number of employees being furloughed
• The dates’ employees have been furloughed to and from
• Details of employees, the name and National Insurance Number of each furloughed employee
• Your PAYE scheme reference number
• Your Corporation Tax Unique Taxpayer Reference, Self-Assessment Unique Taxpayer Reference or Company Registration Number as appropriate for your entity
• Your UK bank account details
• Your organisation’s registered name
• Your organisation’s address
• The total amount being paid to furloughed employees
• The total employer NICs
• The total employer pension contributions (up to 3%)
The Government is also offering other ways to support small businesses. It is crucial to keep up to date information as things are changing on a regular basis.
If you require any advice regarding the furloughing of employees or other employment law related matters, please contact Ram Saroop on 01274 735511.