Job Retention Scheme - Extension

Extension of Coronavirus Job Retention Scheme to 30th September 2021.

The Coronavirus Job Retention Scheme has been extended until 30 September 2021 and the level of grant available to employers under the scheme will stay the same until 30 June 2021.

For periods starting on or after 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee. You do not need to have previously claimed for an employee before the 2 March 2021 to claim for periods starting on or after 1 May 2021.

 Changes to the level of grant from 1 July 2021

From 1 July 2021, the level of grant will be reduced, and you will be asked to contribute towards the cost of your furloughed employees’ wages. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.

The table below shows the level of government contribution available in the coming months, the required employer contribution, and the amount that the employee receives per month where the employee is furloughed 100% of the time.

 

                                                                                                       May            June          July          August          September                          

Government contribution: wages for hours not worked

80% up to £2,500

80% up to £2,500

70% up to £2,187.50

60% up to £1,875

60% up to £1,875

Employer contribution: employer National Insurance contributions and pension contributions

Yes

Yes

Yes

Yes

Yes

Employer contribution wages for hours not worked

No

No

10%

20%

20%

 

This means for periods ending 30th June 2021, you can claim 80% of an employee’s usual salary for hours not worked. From 1st July 2021 the level of grant will be reduced each month and you will be asked to contribute towards the cost of your furlough employee’s wages.

Please do not hesitate to contact Aaron Associates on 020 86650767.