On 1 September, the next changes to the Job Retention Scheme came into play.

Employers must now contribute 10% toward their furloughed staff’s wages. This is due to the drop from 80% to 70% that HMRC will now pay to employees.

The amount paid to the employee from HMRC will now be capped at £2,187.50 per month for all hours not worked.

What happens now

  • Employers must continue to pay furloughed employees 80% of their usual wages for the hours they do not work. This is capped at £2,500 per month. Employers will need 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 September, employers 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).
  • Employers must continue to pay furloughed employees’ National Insurance and pension contributions from their own funds.

Further details

If you want to read more about the scheme as a whole, or would like to see a month-by-month break down of the scheme changes, visit our recent post on Changes to the Coronavirus Job Retention Scheme.

Claiming

To claim for the scheme, you can access the government gateway now. You’ll need your own Government Gateway user ID and password to log in, which you will have received when you registered for PAYE online.

We are here to guide you through this process. If you have any questions, speak to our experienced team.

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