The furlough scheme, where the UK Government pays part of the salary costs of furloughed employees, was first extended to the end of November 2020. Then in an announcement on 5 November 2020 the scheme was extended further until the end of March 2021.
The furlough scheme was due to end on 31st October 2020. The scheme has now been extended until at least the end of November 2020. Neither the employer nor the employee needs to have previously used the CJRS. Businesses that started employing people since 28th February 2020 are now eligible for furlough funding.
This extended Job Retention Scheme will operate as the previous scheme did, with businesses being paid upfront to cover wages costs. The level of the grant will mirror levels available under the CJRS in August, so the government will pay 80% of wages up to a cap of £2,500 per calendar month in November December and January.
As under the current CJRS, flexible furloughing will be allowed in addition to full-time furloughing.
The furlough scheme was due to end in October and then on 2nd December. The scheme has now been extended again until 31st March 2021.
The UK Government will pay 80% of salary costs for furloughed workers from 1st November 2020 to 31st January 2021. The scheme will extend to 31st March 2021, but the funding level will be decided later for claims relating to February and March.
Employees included on an employer’s PAYE records as at 23:59 30th October 2020 are eligible for claims under this extension. In practice 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. Anyone who was made redundant after 23rd September 2020 can be brought back on to the staff payroll and will qualify for furlough funding. To qualify for furlough funding, an RTI submission must have been made for these re-employed workers between 20th March 2020 and 23rd September 2020.
The Job Retention Bonus will no longer be paid in February 2021, as CJRS will still be available at that time. An alternative retention incentive will be put in place at the appropriate time.
HMRC intend to publish details of employers who use the scheme for claim periods from December. Employees will be able to find out if their employer has claimed for them under the scheme.
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