The Coronavirus Job Retention Scheme (CJRS) – Information for Employers

To support you and your business through this difficult time, Garbutt + Elliott have created a guide which gives you more information on the Coronavirus Job Retention Scheme.

What is our understanding so far for CJRS?

Under the Coronavirus Job Retention Scheme (CJRS), all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. The scheme will be in place for three months initially and all UK businesses are eligible.

How will I access the scheme?

You will need to:

  • designate affected employees as ‘furloughed workers,’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation;
  • submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required).

It should be noted that employees must not undertake any work if they are furloughed.

How much is the Grant?

The employer can claim a grant for up to 80% of furloughed employees pay up to a maximum of £2,500 per month.  The Chancellor announced that the grant would be backdated to March 1 2020. Employers do not have to make up the 20% in salary shortfall but it is currently understood that employers can choose to do so.

How do I inform the HMRC?

Information will need to be submitted to HMRC through a new online portal (We are waiting for further details of the information required) and the salary subsidy will be paid through a new HMRC system. HMRC are creating a new IT software system to run the scheme and this may take until April to complete.

Detailed information around Furlough and what it means for your business

For more details on furlough and what is means for your business, read this useful guide:
The Coronavirus Job Retention Scheme Furlough Scheme

Here’s a link to the latest HMRC guidance: Covid-19 support for businesses

Should you require assistance, please contact our Payroll Partner Sarah Ashton on sashton@garbutt-elliott.co.uk, alternatively the Garbutt + Elliott team will be happy to help.