Given the weekend announcement by our Prime Minister, there have been changes to the financial support packages for employers, we list the key facts below of the support available through payroll: –
- Coronavirus Job Retention Scheme (CJRS) has been extended for at least another month.
- Job Support Scheme (JSS) has been postponed until CJRS ends
- All employers with UK bank account and UK PAYE scheme can claim the CJRS grant.
- To be eligible to claim for an employee under this extension, employees must be on an employer’s PAYE RTI submission before 23:59 on the 30th October 2020.
- Employees can be on any type of contract. Employers will be able to agree any working arrangements with employees.
- Employers can claim the grant for the hours their employees are not working, calculated by reference to their usual hours worked in a claim period. Such calculations will broadly follow the same methodology as currently under the CJRS.
- When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.
- Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
- 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.
- The government will pay 80% of the wages up to a maximum of £2500. The grant must be paid to the employee in full.
- Employers will continue to pay the employers NIC and statutory pension contributions and must pay the employees for hours worked in the normal way.
- Employers can choose to top up the employee’s pay at their own expense.
The government will confirm shortly when a claim can first be made in respect of employee wage costs during November. But there is no gap between the end of the last scheme and the start of this extension.
You can read HMRC’s full news story in the link below: –