The UK Government will continue to pay 80% of your furloughed employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, to the end of June.
In July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.
You will need to pay the 10% difference in July, and 20% in August and September, so that you continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.
For the hours not worked you can choose to top up your employees’ wages above the 80% level or cap for each month if you wish, at your own expense.
You can claim before, during or after you process your payroll. If you can, it is best to make a claim once you are sure of the exact number of hours your employees worked, so you don’t have to amend your claim later.
Conditions of claiming CJRS grants
You must pay the associated employee tax and National Insurance contributions to HMRC. This is a condition of claiming the grant, and not doing so will mean you will need to repay the whole of the CJRS grant and you may not be able to claim future CJRS grants.
Flexibly furloughing employees
If your business continues to be affected by coronavirus, you do not need to place all your employees on full furlough. You can also use the CJRS flexibly if you bring your employees back to work for some of their usual hours. You can claim a portion of your employee’s usual wage costs for the hours spent on furlough only.
As a reminder, you must not claim under the CJRS for any hours that your employees work. HMRC are carrying out compliance checks to identify error and fraud in claims.
If you need help in planning ahead for future claim periods, please contact us.
If you are making your own CJRS claims the template with the details of the employees, you are claiming for (on or after 27 May 2021) has been updated by HMRC. See: Download a template if you’re claiming for 16 to 99 employees through the Coronavirus Job Retention Scheme – GOV.UK (www.gov.uk)