Following announcements made by the government, the two schemes set up for businesses during coronavirus will be adjusted.
Our Managing Director, Henry, outlines these changes below:
We’ve highlighted a summary of these adjustments:
CJRS – Flexible Furloughing
From 1st July, businesses will have the flexibility to bring previously furloughed employees back to work part-time. The government will continue to pay up to 80% of their wages for any of their normal hours which they are not working. Any arrangement must be for at least one week, and be confirmed to the employee in writing, and when making a claim under the CJRS, the claim must be for a period of a week or more.
CJRS – Employer contributions
From August, the government grant provided through the job retention scheme will be adjusted every month.
For 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 for the hours the employee doesn’t work.
For August, the government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay ER NICs and pension contributions.
From September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500.
From October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500.
For smaller employers, some or all of your employer NIC bills will be covered by the Employment Allowance.
The CJRS scheme will close for new entrants on 30th June.
To find out more about the scheme and how this could affect your business, contact your local AIMS Accountant.