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United Kingdom Extends Coronavirus Job Retention Scheme

By: Jyme Mariani, Esq. | 15 Dec 2020

The United Kingdom's Coronavirus Job Retention Scheme (CJRS) will now run until the end of March with employees receiving 80% of their current salary for hours not worked. This will help U.K. employees over the winter months during the COVID-19 pandemic [HM Treasury, Government Extends Furlough to March and Increases Self-Employed Support, 5 November 2020]. A fact sheet detailing the final support is available.

Extended Until End of March
The CJRS is extended until 31 March 2021 for all of the U.K. The government will review the policy again in January. As part of the CJRS, eligible employees will receive 80% of their usual salary for hours not worked, up to £2.500 a month. Here are other details:

  • Employer flexibility. Businesses can use the CJRS for employees for any amount of time and shift pattern, including furloughing them full-time.

  • Employer contribution. There are no employer contribution to wages for hours not worked. Employers will cover National Insurance and Employer pension contributions for hours not worked. For an average claim, this accounts for just 5% of total employment costs or £70 per employee per month.

  • Payment. The extended CJRS will continue to operate the same way with businesses being able to claim either shortly before, during, or after running payroll.

  • Employee eligibility. Neither the employer nor the employee needs to have previously claimed or have been claimed for under CJRS to make a claim under the extended CJRS (if other eligibility criteria are met). An employer can claim for employees who were employed and on their PAYE payroll on 30 October 2020. The employer must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March and 30 October 2020, notifying a payment of earnings for that employee.

  • Employees who are re-employed. Employees who were employed and on the payroll on 23 September 2020 who were made redundant or stopped working afterwards can be re-employed and claimed for. The employer must have made an RTI submission to HMRC from 20 March to 23 September 2020, notifying a payment of earnings for those employees.

Jyme Mariani, Esq., is Managing Editor of Payroll Information Resources for the American Payroll Association