What are the Terms of the Extended Job Retention Scheme?

As part of the second national lockdown, announced on 31st October 2020, the Government has extended the Coronavirus Job Retention Scheme (CJRS).

Quick Roundup: Terms of the Extended CJRS

  • Employees will continue to receive 80% of their usual pay for hours not worked. Up to a maximum cap of £2,500.
  • Employers will retain the flexibility to bring furloughed employees back to work on a part time basis (flexible furlough). Or furlough them full time (full furlough).
  • Employers will receive 80% back from the government and will only cover employers’ National Insurance and pension contributions for furloughed hours.
  • There will be a short delay in payment whilst the government updates its systems. Payments will be in arrears for that period.
  • Employees must be on the employers PAYE payroll by 23.59 on 30th October 2020.
  • As under the current rules, employees can be on any type of contract. The employer is able to agree any working arrangements with them.
  • Employers can choose to top up employees’ wages at their own expense if they wish, but they don’t have to do so.

More Reading:

Go here to the Gov.uk website – for more on the extended coronavirus job retention scheme

Financial Planning in Lockdown

 

Photo by Ming Jun Tan

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Risk Warnings

This article and the information on this website is not personal advice. It’s only intended to give you a brief summary or highlight a particular issue for you to investigate further. It is based on our current understanding of legislation and HMRC guidance which can change and is correct as of the date of the post.

If you’re in any doubt whether a particular course of action is suitable for your circumstances, you should seek professional advice. Tax rules can change and any benefits depend on individual circumstances. And, if you are unsure any reliefs are applicable to you, you should consult your accountant or HMRC.

The value of investments and any income from them can fall as well as rise, so you could get back less that you put in. Past performance is not a guide to the future. It cannot provide a guarantee of the future returns of a fund.

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