The Coronavirus Job Retention Scheme (CJRS) is due to close on 31 October and businesses will need to make any final claims on or before 30 November. Employers will not be able to submit or add to any claims after 30 November.
From 1 October, the UK government has paid employers 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work.
Employers will continue to pay furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month and to fund the difference between this and the CJRS grant themselves.
The caps are proportional to the hours not worked. For example, if an employee is furloughed for half their usual hours in October, employers are entitled to claim 60% of their usual wages for the hours they do not work, up to £937.50 (half of £1,875 cap). Employers must still pay their employee at least 80% of their usual wages for the hours they don’t work, so for someone only working half their usual hours they’d need to pay them up to £1,250 (half of £2,500 cap), funding the remaining portion themselves.
Employers will also continue to pay employer National Insurance and pension contributions from their own funds and are reminded to keep the records that support the amount of CJRS grant they have claimed, in case HMRC needs to check it.
Claimed too much in error?
Businesses should check that each claim submitted is accurate so to avoid having to pay interest and penalties if HMRC subsequently discovers an incorrect claim.
Overpayments must be notified to HMRC and repaid by the latest of:
- 90 days from receiving the CJRS grants, when the business was not entitled to them
- 90 days from the point circumstances changed so that the business became no longer entitled to keep the CJRS grant.
If you think your business might have made an incorrect CJRS claim or you wish to check your submissions, contact us at: firstname.lastname@example.org
Our team will be happy to get in touch with you to discuss your requirements.