New information was released on 12 June that details the changes to the Coronavirus Job Retention Scheme.
Stage two comes into play from 1 July 2020. From this date onwards, there are some key differences that you need to know about within the scheme.
UPDATE:
From 1 September 2020, new changes were made to the scheme. To see more about the recent changes and what you need to do next, read September Changes to the Job Retention Scheme.
From 1 July, employees are allowed to return to work from furlough leave. Employers can decide on the hours that their employees return to work for, and for how many days.
With employees back at work, you can still claim the grant for the hours they are not working if they are on a part-time basis.
One of the main changes to the furlough scheme in this next stage is which employees you can receive the grant for. From 1 July, you can only claim the grant for employees who have previously been on the scheme for a minimum of three weeks between 1 March and 30 June 2020.
This requires employees to have been furloughed on or before 10 June in order to have been furloughed for the minimum period of three consecutive weeks.
It is worth knowing that there is an exception if you have had employees returning to work from statutory parental leave.
The Job Retention Scheme will close on 31 October 2020.
From 1 August 2020, you will be asked to contribute towards the cost of your furloughed employees’ wages.
To be eligible for the grant currently, employers must pay 80% of their employees wages while on furlough leave. This will be capped at £2,500 per month while they are furloughed.
Over the months between June and October, the government will stagger the percentage of wages they will cover for employees. This will be as followed:
The government will pay 80% of furloughed employee wages, with a cap of up to £2,500 for the hours spent on furlough. They will also cover employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough.
The government will continue to pay 80% of wages with a cap of £2,500 for the hours an employee is on furlough, but employers will pay ER NICs and pension contributions for the hours the employee is on furlough.
The government contributions will drop down to 70% of employee wages, with a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and will now top up employee wages to ensure they continue to receive 80% of their wages up to a cap of £2,500, for the time they are furloughed.
For the final month of the scheme, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and will top up employee wages to 80% of their wages up to a cap of £2,500, for the time they are furloughed.
Employers can continue to top up employee wages above 80% and the £2,500 cap if they wish to do so, but this will be at their own expense.
An employee must have started working for you and were on your PAYE payroll on or before 19 March 2020. You must also have submitted a Real Time Information (RTI) to HMRC before the same date.
You may have had employees stop working for you on 28 February through redundancy or for other reasons. If this is the case, the table below outlines which employees are eligible for the grant by furlough.
| Was the employee employed with you as of this date? | Date RTI submission notifying payment was made to HMRC | Eligible for CJRS? |
|---|---|---|
| 28 February 2020 | On or before 28 February 2020 | Yes |
| 28 February 2020 | On or before 19 March 2020 | Yes |
| 28 February 2020 | On or after 20 March 2020 | No |
| 19 March 2020 | On or before 19 March 2020 | Yes |
| 19 March 2020 | On or after 20 March 2020 | No |
| On or after 20 March 2020 | On or after 20 March 2020 | No |
Even if an employee works for other employers, they can still be furloughed. That employee must not work for an employer who has put them on furlough.
Employees on furlough will still receive full wages from their other employer should they continue to keep working for them.
If you hire apprentices, you can furlough them as well. They can also undergo training while furloughed, but you must provide at least the Minimum Wage/National Living Wage/National Minimum Wage for any training they take.
If you are self-employed, you may be able to benefit from the Self-Employment Income Support Scheme. This has also been updated and new information can be found in our recent post.
Access the government gateway to claim for the scheme. You’ll need your own Government Gateway user ID and password to log in, which you will have received when you registered for PAYE online.
Whyfield are happy to help guide you through this process, speak to our team for further guidance and advice on the Coronavirus Job Retention Scheme