HMRC issues further guidance on how the Coronavirus Job Retention Scheme (CJRS) will change from 1 July 2020

Under the flexible furlough scheme which commences on 1 July, employers can bring furloughed employees back to work for any amount of time and any work pattern, while still being able to claim the grant for the hours not worked.

The new scheme will only be open to employees that previously been furloughed for at least 3 consecutive weeks taking place any time between 1 March and 30 June 2020

Further guidance on the new scheme was issued by HMRC on 12 June and the main points to note are as follows:

  • From 1 July, agreed flexible furlough agreements can last any amount of time. Employees can enter into a flexible furlough agreement more than once.
  • Where a previously furloughed employee has started a new furlough period before 1 July this furlough period must be for a minimum of 3 consecutive weeks. This is the case regardless of whether the 3 consecutive week minimum period ends before or after 1 July.
  • The number of employees you can claim for in any single claim period starting from 1 July cannot exceed the maximum number of employees you claimed for under any claim ended by 30 June.
  • 31 July is the last date that you can submit claims for periods ending on or before 30 June.
  • The first time you can submit a claim for days in July will be 1 July, you cannot claim for periods in July before this point.
  • Claim periods starting on or after 1 July must start and end within the same calendar month.
  • If an employee is flexibly furloughed you will need to work out their usual hours and record the actual hours they work as well as their furloughed hours for each claim period.
  • If your employee is fully furloughed you do not need to work out their usual and furloughed hours. An employee is fully furloughed if they do not work for you during the claim period.

From 1 August, the level of government grant provided through the job retention scheme will be reduced each month.

Timeline for changes to the scheme

June and July – government pays 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.

August – government pays 80% of wages up to £2,500. Employers will pay ER NICs and pension contributions.

September – government pays 70% of wages up to £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80%.

October – government pays 60% of wages up to £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up the 80% total.

 

Should you require assistance around the Coronavirus Job Retention Scheme and furlough, please contact support@garbutt-elliott.co.uk and we will be happy to help.