CJRS EXTENDED 80% WAGES FOR ALL PAYROLL EMPLOYERS
What’s new in the support available
• CJRS has been extended to 31 March 2021 for all parts of the UK. From 1 November, the UK Government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month. The UK Government will review the policy in January.
• Employers and their employees do not need to have used the scheme before to claim for periods from 1 November. Eligibility criteria is provided in this email.
• HMRC intend to publish details of employers who use the scheme for claim periods from December, and employees will be able to find out if their employer has claimed for them under the scheme.
• There are now monthly deadlines for claims. Claims for period on/after 1 November must be submitted within 14 calendar days after the month they relate to, unless this falls on a weekend in which case the deadline is the next weekday.
• The Job Retention Bonus will no longer be paid in February 2021 and an alternative retention incentive will be put in place at the appropriate time.
• The launch of the Job Support Scheme has also been postponed.
Who is eligible?
Employers
• All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS.
Employees
• To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020.
• Employees can be on any type of contract. Employers will be able to agree any working arrangements with employees.
• Employers can claim the grant for the hours their employees are not working, calculated by reference to their usual hours worked in a claim period. Such calculations will broadly follow the same methodology as currently under the CJRS.
• When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.
• Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
• For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts.
What support is being provided and employer costs:
• For hours not worked by the employee, the government will pay 80% of wages up to a cap of £2,500. The grant must be paid to the employee in full.
• Employers will pay employer NICs and pension contributions, and should continue to pay the employee for hours worked in the normal way.
• As with the current CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
• The Government will confirm shortly when claims can first be made in respect of employee wage costs during November, but there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension.
What you need to do now
Submit any claims for periods up to 31 October on or before 30 November.
What you need to do for your claims – for periods from 1 November
• Read the new guidance – GOV.UK
• Agree working hours with your employees you wish to furlough for November and agree any changes to their employment contact.
• Submit any claims for periods from 1 November to 30 November 2020 no later than 14 December 2020.
• Employers will need to keep the records that support the amount of CJRS grant they claim, in case HMRC need to check it.
You can contact our specialist tax advisor at MJ Support & Co to look into your business affairs and assess if you can apply for the self-employement income support scheme or for any other cash grant available for different sectors.
Why you choose us!
Government Covid-19 Scheme– We will assess if you can apply for the above scheme and support your livings by get advantage of the schemes provided by Government.
Tax Planning – To ensuring meeting all deadlines, we won’t leave it until last minute, when it is too late!
No Penalty Guarantee – We offer systemised accounting and tax advice to enable our clients to meet with HMRC regulations.
Regular Compliance Checks – Offering regular compliance check to meet with the compliance requirements of small businesses and individual landlords.
No Surprise Bills – Call or email your Property Tax Accountant at any time and you won’t get billed for it.
We Make Your Life Easy – Life is beautiful, so when it comes to your tax affairs, we keep things simple and take away the hassle for you.
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