How will the Coronavirus Job Retention Scheme work now?
By Dee Woodcock
As from 1 November, it does not matter that an employer or an employee may not have previously used the CJRS. Employers are still able to furlough employees on a flexible or full time basis, as long as they have been on their PAYE payroll before midnight on 30 October 2020 and have made a PAYE RTI submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee. Employers were able to agree to retrospectively furlough someone with effect from 1 November 2020, provided the agreement to retrospectively claim furlough occurred before 13 November 2020.
The employer, however, must confirm in writing to the employee that they have been furloughed, and will need to keep a written record of the Agreement for five years.
The government will pay 80% of wages for hours not worked up to a cap of £2,500 per month. Employers will need to cover employer NICs and employer pension contributions on all amounts paid to an employee (including those amounts covered by the CJRS grants). As previously under the CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
At Sampson Coward we can advise you on utilising the Furlough scheme and assist you with the preparation of any documentation or any queries you may have in connection with it.