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Coronavirus Job Retention Scheme (CJRS) Further Extension

Coronavirus Job Retention Scheme (CJRS) Extension

As a result of the second national lockdown, the Chancellor announced the extension of the CJRS from 1 November 2020 until 31 March 2021. The CJRS was originally due to end on 31 October 2020 and was to be replaced by the Job Retention Scheme (JSS). As a consequence, the JSS would seem to have become redundant.

The Job Retention Scheme Bonus has also been put on hold.

The extended CJRS is in two distinct periods, from 1 November 2020 until 31 January 2021 and from 1 February 2021 until 31 March 2021. The detailed rules for the second of these 2 periods are due to be announced by the government in January 2021, when they will undertake a review of the scheme.

For the period from 1 November 2020 until 31 January 2021, the principal rules of the scheme are as follows:

  • Grants will be available for 80% of the normal salary of employees, in respect of hours not worked. This would mean for an employee whose normal salary is £1,000, but who undertakes no work, the grant claim would be £800. For a similar employee who works 50% of their normal hours, the grant claim would be £400.
  • Employers can chose whether to pay employees in excess of the grants claimed, however the employee’s salary must be at least the amount of the grant claimed.
  • Employees need to have been employed by their employer and included on a payroll return to HMRC by 30 October 2020.
  • The grant claim does not cover employers national insurance not employers pension costs.
  • The deadline for claiming the grant is 14 days after the end of each month. Hence the grant claim for November 2020 needs to be made by 14 December 2020.

Further details about the CJRS can be found on the following link.

https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme

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