More changes to the Coronavirus Job Retention Scheme

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

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HMRC have advised another change to the Coronavirus Job Retention Scheme (CJRS) from 1 September and we wanted to keep you in the loop on how this may affect you as an employer. 

From 1‌‌ September HMRC will now pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.

What you need to do now:

  • Continue to pay your 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. You will need to fund the difference between this and the CJRS grant yourself.
  • The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in September, you are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
  • Continue to pay furloughed employees’ National Insurance and pension contributions from your own funds.

It’s important that you provide HMRC with all the data needed to process your claim. Payment of your grant may be at risk or delayed if you submit a claim that is incomplete or incorrect. HMRC will get in touch with you if they see any employee data missing from your previous claims.

If you are claiming for 100 or more employees you should use the standard template to submit employees’ details. It is important that you submit the correct data (including National Insurance numbers) in the correct format. You can download the template here.

For help working out your claim HMRC have an online calculator to help you calculate it.

For more details on the Coronavirus Job Retention Scheme (CJRS), please visit our help sheets and guides page. If you are concerned or have questions about this, please get in touch and we’ll be happy to help.