Changes to the Coronavirus Job Retention Scheme (CJRS) from July 2021
The UK Government continues to pay 80% of your furloughed employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, to the end of June.
In July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.
You will need to pay the 10% difference in July so that you continue to pay your 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.
For the hours not worked you can continue to choose to top up your employees’ wages above the 80% level or cap for each month, at your own expense.
To help you plan ahead for all future claim periods, the CJRS calculator is available to help you work out how much you can claim for employees. To find this and everything you need to know about the CJRS, search ‘Job Retention Scheme’ on GOV.UK.
If MATCH handles your payroll, this is all in hand.
Submitting your CJRS claims for July
CJRS claims for periods in May can be submitted now, and must be made by Monday 16 August.
You can claim before, during or after you process your payroll. If you can, it’s best to make a claim once you’re sure of the exact number of hours your employees will work so you don’t have to amend your claim later.
Check if you and your employees are eligible and work out how much you can claim using our CJRS calculator and examples, by searching ‘Job Retention Scheme’ on GOV.UK.
Conditions of claiming CJRS grants
You must pay the associated employee tax and National Insurance contributions to HMRC. This is a condition of applying for the grant, so not doing so will mean you’ll need to repay the whole of the CJRS grant and you may not be able to claim for future CJRS grants.
If you are having difficulties paying any of your tax liabilities to HMRC, they will work with you to explore affordable payment options – for example, through a payment plan where you can pay over time, in instalments. To find out more go to GOV.UK and search ‘time to pay arrangement’.
What you need to do now
- Submit any claims for July no later than Monday 16 August.
- Keep records that support the amount of CJRS grants you claim, in case HMRC needs to check them.
- Make sure you’re paying employee tax and National Insurance contributions to HMRC and contact HMRC if you’re struggling to pay.
MATCH is working hard to keep on top of all the latest news and government support so, as always, feel free to get in touch if you have any queries and we’ll be happy to help.
MATCH Accounting Limited