Coronavirus Job Retention Scheme (CJRS)

Under the Coronavirus Job Retention Scheme, all UK employers can access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. All UK businesses are eligible.

To make a claim, you need to meet three conditions:

  1. You need to have created and set up a PAYE scheme before 19 March 2020
  2. You need a UK bank account, into which the money will be paid
  3. You MUST have enrolled for PAYE online.

From the 1 March employers were able to make a claim worth 80% of an employee’s usual wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. The scheme is available until the end of October, but contributions by the employer are required after 31 July.

Breakdown of Government and Employer contributions

March – July

80% of wage costs can be claimed via CJRS (up to £2,500)

Employers NI contribution and pension payable by the Government

August

80% of wage costs can be claimed via CJRS (up to £2,500)

Employers NI contribution and pension payable by the employer

September

70% of wage costs can be claimed via CJRS (up to £2,500)

10% of wage costs paid by employer*

Employers NI contribution and pension payable by the employer

October

60% of wage costs can be claimed via CJRS (up to £2,500)

20% of wage costs paid by employer*

Employers NI contribution and pension payable by the employer

 
* This doesn’t include the optional 20% top-up that some employers will pay to staff to ensure they receive 100% of their pay/salary

 

Once HMRC have received your claim and it is eligible for the grant, they will pay it via BACs payment to a UK account. All claims to 30 June 2020 must be filed by 31 July 2020. This support is for employees on PAYE only. Employers can now set up a PAYE online account with immediate access. They are removing the need to wait ten days for an activation code.

If you have made an employee redundant on or after 28 February 2020, or they left for another reason, or new employees who were due to start on or after 28 February 2020 and subsequently let go, employers can re-employ them and put them on furlough and gain support through the scheme.

Following the announcement on 29 May 2020, the scheme will be closed to new entrants from 30 June 2020, meaning that if an employee had not been furloughed before the 10 June, they could no longer be considered for the scheme.

Further details on what this means for employees and employers can be found in our Changes to the Coronavirus Job Retention Scheme (CJRS), published 15 June.

For more information, please reach out to your Price Bailey contact or our Payroll teams through Will Wilson.

 

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.

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