Coronavirus Job Retention Scheme – “furlough scheme” – has been extended for businesses to use during the new lockdown in England due to start on Thursday 5th November 2020. The plan at the moment is for the scheme to end when the lockdown period ends.
Guidance on the rules of the scheme are due out this week but we expect that most of the rules and processes will remain the same. The scheme from 1st November 2020 is more generous than in October.
November Scheme Rules – this is what we know so far and please note that the full guidance will be issued this week:
- The employer may bring the furloughed employees back to work on a part time basis or furlough them full-time – you still have this flexibility
- The employer will be able to agree to any working pattern with employees and the employer must pay for any hours worked
- The employer must pay for all tax and NICs contributions required
- For hours not worked by the employee, the government will pay 80% of wages up to a cap of £2,500
- The grant must be paid by the employer to the employee in full
- The employer must meet all employer pension contributions obligation
- The employer can choose to top up the wages at their own expense
- When claiming the CJRS grant for furloughed hours, the employer will need to report and claim for a minimum period of 7 consecutive calendar days
- The employer will need to report hours worked and the usual hours the employee would be expected to work in a claim period
Who is eligible for the new scheme?
- All employers with a UK bank account and UK PAYE schemes can claim the grant
- Neither employer nor employee needs to have previously used the Job Retention Scheme
- Employees must have been on the employer’s PAYE payroll by 23.59 on 30th October 2020
Please contact us if you have any questions or need to discuss this scheme further.