Coronavirus Job Retention Scheme update

Coronavirus Job Retention Scheme Update

The Coronavirus Job retention scheme has been extended by the government and over the next few months the amounts you are able to claim with change.  Here is a quick summary of the ‘headline’ changes to the scheme, as currently advised.

June and July:The government will continue to pay 80% of salaries, plus national insurance and pension contributions as it does now. Employers are not required to pay anything.

On 1st July 2020, employees are able to go back and do some work for their employer part-time(this has been moved forward from the originally-stated date of 1 August 2020)  Hours worked will be paid in full by the employer, the remaining hours/ salary will be furloughed and therefore 80% paid by the scheme.  HM Revenue & Customs will announce more details of how the furlough scheme interacts with work on Friday 12 June.

The scheme will close to new entrants on 10 June 2020 – so if you have not furloughed an employee and made at least one claim for furlough cash, employers cannot furlough employees at a later date.

August:The state will pay 80% of wages, up to a cap of £2,500 per month Employers will now have to pay national insurance and pension contributions.

September:The state will pay 70% of wages, up to a cap of £2,190 per month Employers will have to pay national insurance and pension contributions, and 10% of wages to make up 80% of the total, up to a cap of £2,500 per month.

October:The state will pay 60% of wages, up to a cap of £1,875 per month Employers will then need to pay national insurance and pension contributions, plus 20% of wages to make up 80% of the total, up to a cap of £2,500 per month.

For more information, and for regular updates please check the gov.uk website:  https://www.gov.uk/government/collections/coronavirus-job-retention-scheme