Job Retention Scheme (Furlough)- 01.06.2020 update

HMRC have announced the following changes to the JRS. These are significant changes and will affect companies in different ways, so we will contact you in the next 2 weeks to discuss your position and queries.

– From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim JRS grant for their normal hours not worked. When claiming the JRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week.

– The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.

– This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

– Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June.

– The amount of government grant will be gradually reduced:

• June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
• August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions
• September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
• October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.