Continuation of support for 80% of furloughed wages until April 2021


Today, the Chancellor announced that the Coronavirus Job Retention Scheme (CJRS) will remain open until 30 April 2021.

Previously the CJRS was only due to remain open until 31 March 2021. The CJRS grant will cover the full 80% of wages for those employees who are furloughed. Employers will not be required to contribute or top up wages for the hours that a furloughed employee does not work. Although, employers will still need to pay employer National Insurance Contributions and pension contributions on hours not worked.

Any claims under the CJRS scheme for April 2021 will need to be submitted by 14 May 2021. It is worth remembering there are an extensive list of reasonable excuses, which HMRC may accept if you have been unable to submit a claim in time.

An overview of the latest CJRS Treasury Direction can be read here and an article covering the latest CJRS guidance can be read here.

Graham Irons comments:

“Today’s announcement from the Chancellor, which extends the CJRS scheme until the end of April 2021, will be welcome news for businesses.

Further clarity has been provided over the level of support available under the CJRS scheme, which has been confirmed as 80% for hours not worked. This will do away with the decreasing support seen in previous versions of the CJRS. The change will provide certainty as businesses plan over the coming months, at a time when more businesses are being impacted by local tiered restrictions.

A wider Covid-19 economic support budget, which will set out the next phase of economic support, is due to be announced by the Chancellor on 3 March 2021.The extension of the CJRS until 30 April 2021, if required, will give businesses enough time to consult on any potential redundancies before the end of the scheme. To discuss the scheme in more detail contact a member of the team here.”

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