The government is extending the CJRS to support individuals and businesses who are impacted by coronavirus (COVID-19) this winter. This is an extension of the CJRS and the scheme rules will remain the same.
Chancellor said: "The furlough scheme was designed and delivered by the government of the United Kingdom on behalf of all the people of the United Kingdom, wherever they live," he says.
“That has been the case since March, it is the case now and will remain the case until next March."
The government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more. Claims can be made by employers across the UK that meet the eligibility criteria.
Updated details on:
1. Employers who can claim under the CJRS extension
Employers do not need to have used the CJRS previously. Employers across the UK can claim, whether their businesses are open or closed. HMRC will publish details of employers who make claims under the extended CJRS scheme, starting from December. Full details will be included in full guidance which will be published on 10 November 2020.
2. Employees furloughed under the CJRS extension
Employers 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 the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.
Employers will have flexibility to use the scheme for employees for any amount of time or shift pattern, furloughing employees on either a full-time or part-time basis, and will be able to vary the hours worked in agreement with the employee.
As under the current CJRS rules, employees can be on any type of employment contract.
3. Employees not claimed for previously under CJRS
Employees do not need to have been furloughed under the CJRS previously.
For employees that meet the eligibility criteria, and were previously furloughed, employers must use the same calculations for calculating reference pay and usual hours as CJRS.
4 Employees re-employed by their employer
Employees that were employed and on the payroll on 23 September 2020 who were made redundant or stopped working for their employer afterwards can be re-employed and claimed for. The employer must have made a PAYE Real Time Information (RTI) submission to HMRC from 20 March 2020 to 23 September 2020, notifying a payment of earnings for those employees.
Similarly, an employee who was on a fixed term contract, on payroll on 23 September, and that contract expired after 23 September can be re-employed and claimed for, provided that the other eligibility criteria are met.
5. Paying employees’ taxes
Employees will still pay the taxes they normally pay out of their wages.
Employers must deduct and pay to HMRC Income Tax and employee National Insurance contributions on the full amount that they pay the employee, including any scheme grant. The CJRS grant does not cover employers’ National Insurance contributions or pension contributions.
Employers must also pay to HMRC the employer National Insurance contributions on the full amount that they pay the employee, including any scheme grant.
6. What employers can claim - calculations
The closing date for claims up to and including 31 October remains 30 November 2020, using existing CJRS guidance.
All employees on an RTI submission on or before 19 March 2020 will be able to use the CJRS calculations as applied in August 2020 for reference pay and usual hours. However, for new employers claiming and new employees hired between 20 March 2020 and 30 October 2020 the CJRS methodology will update the reference pay and usual hours to take account of the period covered by the extension.
For employees on fixed pay employed on or after 20 March 2020, the last pay period prior to 30 October 2020 provides the basis for calculation. For employees on variable pay or hours, employed after 20 March, the average of tax year 2020 to 2021 up to the start of the furlough provides the basis for calculation.