The United Kingdom's Coronavirus Job Retention Scheme (CJRS) is further extended until the end of September. The CJRS had already been extended until the end of April [HM Treasury, The Coronavirus Act 2020 Functions of Her Majesty's Revenue and Customs (Coronavirus Job Retention Scheme) Direction, 15 April 2021].
Changes for the Extension
Here are some of the changes due to the extension:
- Eligibility. For claim periods on or after 1 May 2021, employers can submit claims for employees who were employed and included on a Pay As You Earn (PAYE) Real Time Information (RTI) submission to Her Majesty's Revenue and Customs (HMRC) between 20 March 2020, and 2 March 2021. Previously, employees had to be included on a PAYE RTI submission to HMRC between 20 March 2020, and 30 October 2020.
- Support percentages. The level of government support will change for claim periods starting in June, as follows:
- June claim period. The level of government support remains at 80% of an employee's usual wages for any hours they would normally work spent on furlough (up to £2,500 per month).
- July claim period. Employers can reclaim 70% of an employee's standard pay for any hours they would normally work spent on furlough (up to £2,187.50 per month). Employers must contribute 10% for this claim period.
- August and September claim period. Employers can reclaim 60% of an employee's usual wages for any hours they would normally work spent on furlough (up to £1,875 per month). For these two claim periods, employers are required to contribute 20%.
Jyme Mariani, Esq., is Managing Editor of Payroll Information Resources for the American Payroll Association