From Rowleys Chartered Accountants
9th July 2020
Amendments to the scheme to be implemented from July until October 2020. (“CJRS phase two”)
Key facts relating to CJRS phase two
- From July 2020, employers will be able to bring employees back to work on a part-time basis, whilst being able to access the CJRS grant for any hours not worked.
- Employers can decide on the shift pattern or working hours they want the employee to work, but must agree this with the employee, and confirm that agreement in writing
- Employers will need to report and claim for a minimum period of a week, but can claim for longer periods if required.
- Employers will be required to report the number of hours an employee has worked ; alongside the number of hours they would of usually worked within the claim period,
- The minimum payment to employees will continue to be 80% of earnings, up to a maximum cap of £2,500 per month calculated in proportion to hours that have not been worked, when set against an employee’s usual working hours.
- Employers will be responsible for paying employees for any hours they have worked , including the associated employer National Insurance (NI) and pension contributions
- In order to qualify for the scheme from 1 July an employee must have been placed on furlough on or before 10 June 2020, and been on furlough for a minimum of 3 weeks before 30 June 2020.
- From 1 July, claim periods can no longer overlap calendar months due to the changes in the scheme
- Employers must not claim for a higher number of employees than they have claimed for prior to 30 June 2020. If a business made separate claims for 50, 30 and 10 staff under the scheme, then the highest amount they can claim for from 1 July 2020 would be 50.
July 2020
The guaranteed figure of 80% of employee wages, for any hours
the employee has not worked , up to a cap of £2,500 per month, will
by paid by the government along with the associated employer NI and pension contributions
The employer will be responsible for paying for any hours worked plus related on-costs.
August 2020
The guaranteed figure of 80% of employee wages, for any hours
the employee has not worked , up to a cap of £2,500 per month, will
by paid by the government but the employer will be responsible for paying the associated employer NI and pension contributions
The employer will be responsible for paying for any hours worked plus related on-costs.
September 2020
The guaranteed figure of 80% of employee wages, for any hours
the employee has not worked , up to a cap of £2,500 per month, will be made up of 70% from the government and 10% from the employer. The employer will also be responsible for paying the associated employer NI and pension contributions
The employer will be responsible for paying for any hours worked plus related on-costs.
October 2020
The guaranteed figure of 80% of employee wages, for any hours
the employee has not worked , up to a cap of £2,500 per month, will
be made up of 60% from the government and 20% from the employer. The employer will also be responsible for paying the associated employer NI and pension contributions
The employer will be responsible for paying for any hours worked plus related on-costs.
The above commentary is based on our understanding of the guidance as at 2 July 2020. The guidance may well be amended by HM Revenue and Customs from time to time.
