Coronavirus Job Retention Scheme | UK-wide

Summary:

The Coronavirus Job Retention Scheme (CJRS) - also known as the furlough scheme - is being extended until 31 March 2021 with eligible employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500 per month.

Eligibility criteria:

If you are an employer with a PAYE scheme, you can access support to continue paying part of your employees' salary instead of laying them off. This applies to employees who have been asked to stop working because of coronavirus, but are being kept on the payroll. They are known as ‘furloughed workers’.

All UK-wide employers with a PAYE scheme that was created and started on or before 19 March 2020 including:

  • businesses
  • charities
  • recruitment agencies (agency workers paid through PAYE)
  • public authorities

The employer must have a UK bank account.

CJRS extension

Employee eligibility: Neither the employer nor the employee needs to have previously claimed or have been claimed for under CJRS to make a claim under the extended CJRS (if other eligibility criteria are met).

An employer can claim for employees who were employed and on their PAYE payroll on 30 October 2020. The employer must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.

Employees that are re-employed: Employees that were employed and on the payroll on 23 September 2020 (the day before the Job Support Scheme announcement) who were made redundant or stopped working afterwards can be re-employed and claimed for. The employer must have made an RTI submission to HMRC from 20 March 2020 to 23 September 2020, notifying a payment of earnings for those employees.

Additional information:

The Coronavirus Job Retention Scheme is being extended until 31 March 2021.

Employer flexibility: Businesses will have flexibility to use the scheme for employees for any amount of time and shift pattern, including furloughing them full-time.

Employer contribution: There will be NO employer contribution to wages for hours not worked. Employers will only be asked to cover National Insurance and Employer pension contributions for hours not worked. For an average claim, this accounts for just 5% of total employment costs or £70 per employee per month. Policy will be reviewed in January to decide whether economic circumstances are improving enough to ask employers to contribute more.

Payment: The extended CJRS will operate as the previous scheme did, with businesses being able to claim either shortly before, during or after running payroll.

If your business needs short-term cash flow support, you may be eligible for the Coronavirus Business Interruption Loan Scheme.

Support organisation:
  • HMRC
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