Coronavirus Jobs Retention Scheme
CJRS eligibility from May 2021
If your clients have employees who have previously been ineligible for the CJRS, as they were not on their payroll on 30 October 2020, they may be eligible for periods from 1 May 2021 onwards.
From May employers will be able to claim for eligible employees who were on their PAYE payroll on 2 March 2021. This means they must have made a PAYE Real Time Information (RTI) submission between 20 March 2020 and 2 March 2021, notifying HMRC of earnings for that employee.
Your clients and their employees do not need to have benefitted from the scheme before to make a claim, as long as they meet the eligibility criteria.
This scheme enables employers to “furlough” staff i.e. to have them not working but kept on payroll, and will cover a portion of salaries as well as employer pension and National Insurance contributions. Under the scheme announced by Chancellor Rishi Sunak, employers can claim a grant covering 80% of the wages for a furloughed employee, subject to a cap of £2,500 a month. Eligible employees include full-time, part-time, agency and zero-hour contracts.
The Job Retention Scheme will now remain open until end September 2021. You can download a Treasury factsheet here.
You can read below key changes to the scheme:
- Extended until end September 2021.
- Eligible employees will receive 80% of their salary (up to £2.500 per month) for hours not worked, with no employer contribution to wages for hours not worked.
- Employers will be expected to pay 10% towards the hours their staff do not work in July, increasing to 20% in August and September, as the economy reopens.
- Employers will be asked to cover National Insurance and pension contributions for hours not worked.
- Neither the employer nor the employee needs to have previously claimed / been claimed for under the existing scheme.
Any working hours arrangement agreed between a business and their employee must cover at least one week and be confirmed to the employee in writing. If employees are unable to return to work, or employers do not have work for them to do, they can remain on furlough and the employer can continue to claim the grant for their full hours under the existing rules.
Page updated: 23/04/2021