The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of September 2021. This means the CJRS extension will fund part of your furloughed employees’ wages until 30 September 2021. However, there are some changes to the scheme.

• Employees will continue to receive 80% of their current salary for hours not worked with no employer contribution beyond NICs and workplace pensions required in April, May and June 2021.
• From July 2021, the Government will introduce an employer contribution towards the cost of unworked hours. CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. 
• From August 2021 until the end of September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875. 
• Employers will need to continue to pay their furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.
• They also will need to continue to make the Employer National Insurance contributions and employer pension contributions.
• From 1 May 2021 on, the scheme has been amended to include newly eligible employees who were employed on 2 March 2021, as long as they were reported on an RTI submission between 20 March 2020 and 2 March 2021.

As businesses start to re-open, the CJRS extension does allow employees to remain on flexible furlough and the government will fund 80% of the employee’s usual hours unworked.

Need further information on the Job Retention Scheme? Get in touch with us and we would be more than happy to help! Contact our payroll department at payroll@ssmithaccountants.co.uk.

If you would like further information on which employees you can furlough, click here. 

Are you Self-Employed and you need to claim the fourth grant available? Click here for more information.