On Saturday 31st October, Boris Johnson confirmed that the CJRS, also known as the furlough scheme, will be extended to cover the period up until the 2nd December 2020. However, it is likely that, if National lockdown restrictions are extended, the furlough scheme will be extended with it.
How much will employees receive under the extended furlough scheme from November 2020?
Employees will receive 80% of their current salary for hours not worked, up to a maximum cap of £2,500. The extended furlough scheme is more generous for employers than it had been in September and October.
Who is responsible for NICs and Pension Contributions under the new furlough scheme?
Employers will be responsible for NICs and pension contributions.
Is flexible furlough is still an option post November?
Flexi-furlough will continue to be an option, so employees can work part-time and receive a furlough grant for unworked hours.
Claims will be made using the same portal as for used for previous claims under the CJRS.
Explaining RTI Real Time Information submissions
The government has widened the furlough scheme so that, to be eligible to be claimed for under this extension, employees must simply have been on an employer’s PAYE payroll before midnight on 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020. This will come as particularly welcome news for those employees who have never qualified for furlough but who would have been eligible for Job Support Scheme, including recent starters and employees who carried on working throughout the pandemic and never stopped work for three consecutive weeks before 1 July (a pre-condition of eligibility for the furlough scheme after July)
Did the Job Support Scheme ever open?
No, the Job Support Scheme will launch when the new furlough extension ends.
Many businesses have already put in place JSS Open Agreements in anticipation of the scheme’s launch on Sunday 1st November. Those businesses should contact affected employees as soon as possible to explain that the government has made a last-minute decision to extend the furlough scheme and to ask them to agree to continue to be furloughed instead.
We hope this information helps you and we are here for you during this difficult time. We will continue to keep you updated as the Government releases new information. Our business contingency plan is in place and we will do everything we can to support our clients during this uncertain period, please do not hesitate to contact us here if you have any concerns or queries.
Visit our COVID19 Business Hub for more information
Latest blogs from HB Accountants
- Sustainability Report from HB Accountants: 2024
- Hey, We’re Hiring! Train to become an Accountant with HB Accountants: Accounts Apprenticeship position
- Are You Considering Earning Extra Income Through A Side Hustle In 2024?
- Happy New Tax Year! Navigate your 2024-25 Tax Year With Ease
- Not Claiming Child Benefits? How This Could Affect Your Child
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
