Over 8 million UK employees across sectors have been furloughed under the UK Government’s Coronavirus Job Retention Scheme.
HMRC has now confirmed several changes to the scheme, which will take effect as businesses and communities gradually open over the coming months. By November, the CJRS will have been phased out completely.
In preparation for these changes, the government has stated that there are to be no new additional furloughed employees after 10th June.
From 1st July, employers will be able to bring back furloughed staff on a part-time basis, which could mean a certain amount of days per week or working different weeks in a month. For those periods not worked by the employee, the CJRS grant will continue to cover the full 80% furlough pay plus associated employer’s national insurance and pension contributions.
From August, the full 80% furlough pay will still be covered, but the employer costs can no longer be included in the claim.
As of September, only 70% of the 80% furlough pay will be covered by the CJRS grant, with the employer contributing 10% plus the employer costs.
For October, the final month of the scheme, this will drop further to 60%, meaning employers will be contributing the remaining 20% plus the employer costs.
To closely support our clients throughout the next few months, we will be providing regular updates on our position as new information emerges.