Posted on 6th November 2020 at 13:09
Recent announcements about the extension of the Job Retention Scheme, has now confirmed that the scheme will be extended to the end of March 2021.
A summary of the extension follows:
Flexible or full-time furlough can be used
Employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020
For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts
For hours not worked by the employee, the government will pay 80% of wages up to a cap of £2,500. The grant must be paid to the employee in full. This puts the clock back to how things were in August
Employers will pay employer NICs and pension contributions, and should continue to pay the employee for hours worked in the normal way
Neither the employer nor the employee needs to have previously used the CJRS
The Job Retention Bonus will not be paid in February, but instead the Government will redeploy a retention incentive “at the right time”
The scheme will be reviewed in January to decide whether economic circumstances are improving enough to ask employers to contribute more
The Job Support Scheme has been postponed
Employees that were employed and on the payroll on 23rd September 2020 (the day before the Job Support Scheme announcement), and who were made redundant or stopped working afterwards can be re-employed and claimed for. The employer must have made an RTI submission to HMRC from 20th March 2020 to 23rd September 2020, notifying a payment of earnings for those employees.
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