CJRS 2.0 - What you need to know

The Coronavirus Job Retention Scheme has been hugely popular and, according to recent statistics, over 1.1 million employers had furloughed employees in 9.2 million jobs and claimed more than £23 billion in grants. The CJRS scheme will continue to support jobs until the end of October, however, from 1st July, there will be many changes to the scheme. Here we've put together a summary of some of the key points to note.

Flexible Furlough

To date, employees that were placed on furlough could not undertake work for you. Originally, the scheme was only for employees who were not working, and while on furlough, an employee could not undertake work for or on behalf of the organisation. However, from 1st July, employers will be able to bring furloughed workers back to work on a part-time basis while still being able to claim under the CJRS for hours not worked.

• The government will continue to pay 80% of furloughed employees wages for any normal hours they do not work, up until the end of August, but the employer will have to pay employees for the hours they do work, e.g. if a furloughed worker returns to work for two days per week, they would need to be paid as normal by their employer for these two days, while the government would cover the other three days.

• From 1st July, employers will only be able to claim for employees who have previously been furloughed for at least 3 consecutive weeks any time between 1st March 2020 and 30th June 2020. An exception to this is where an employee is returning from statutory parental leave after 10th June 2020 and meets the qualifying criteria to be furloughed for the first time.

• Employers will decide the hours and shift patterns their employees will work on their return, and so employees can work as much or as little as the business needs, with no minimum time that they can furlough staff for.

• If employees are unable to return to work, or employers do not have work for them to do, they can remain fully furloughed and the employer can continue to claim the grant for their full hours under the existing rules.

Furlough Scheme Wind-Down

From August 2020, the level of grant will be reduced each month. Employers will have to start contributing to the wage costs of paying their furloughed staff, and this employer contribution will gradually increase in September and October.

• In August, the government will continue to pay 80% of wages up to a cap of £2,500, but employers will be required to pay employer National Insurance contributions and employer pension contributions. For the average claim, this represents 5% of the gross employment costs that they would have incurred if the employee had not been furloughed. 

• For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will need to pay employer NI contributions and employer pension contributions plus 10% of wages to make up 80% of the total, up to a cap of £2,500.

• In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will need to pay employer NI contributions and employer pension contributions plus 20% of wages to make up 80% of the total, up to a cap of £2,500.

• After 31st October, the government contributions will finish and the scheme will come to an end.

Making a Claim

In line with the above changes to the Coronavirus Job Retention Scheme, there are also changes to the way employers need to make a claim.

• Employers will have until 31‌‌st July to make any claims in respect of the period to 30‌‌th June. Claims for periods after 30th June can only be made from 1st July.

• Claim periods starting on or after 1st July 2020 must start and end within the same calendar month. Therefore, pay periods which span two calendar months must be broken down into two separate claims. This is to accommodate the fact that the scheme is changing from month to month.

• It is possible to make more than one claim in each month, but each claim must be for a minimum period of at least 7 days. The only exception to this is if you are claiming for the first few days or the last few days in a month, known as 'orphan days'. In this instance, a claim period can be shorter than 7 days.

• The number of employees you can claim for in any claim period from 1st July 2020 cannot exceed the maximum number of employees you claimed for in any single claim before 30th June 2020. An exception to this is where an employee is returning from statutory parental leave after 10th June.

• When claiming for employees who are flexibly furloughed, employers are required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked. Therefore, you should not claim until you are sure of the exact number of hours they will have worked during the claim period.

Interested in finding out more about the new changes to the Coronavirus Job Retention Scheme? Watch our webinar on-demand where we discuss flexible furlough, the wind-down of the scheme and changes to making a CJRS claim.

Posted byRachel HynesinCoronavirus

The Road to COVID-19 Recovery - Return to Work Safety Policies

Join us on 11th June for a free COVID-19 webinar

This webinar will examine key facts & updated guidance on COVID-19 payroll impacts. Understand what the lockdown easing will mean for your business as you reopen and what COVID-19 safety policies you need to introduce.

Free Webinar: Register Now

Part 1: Important COVID-19 Payroll Updates

In recent months, HMRC have introduced COVID-19 Government schemes to help keep paying employees with a number of important updates being rolled out. The government has announced the first steps to ease the coronavirus restrictions with a roadmap in place for lockdown measures to be slowly lifted. Understand how to adapt your payroll processes to accommodate for the schemes and subsequent updates.

Agenda

• The Coronavirus Job Retention Scheme - A Quick Recap
• How BrightPay’s CJRS Claim Report works
• COVID-19 Related Statutory Sick Pay & The SSP Rebate Scheme
• Managing Annual Leave during COVID-19

Part 2: Return to Work Safely Protocol

The UK government has set out a roadmap for lifting further restrictions and opening more businesses and venues, but this plan is dependent on successfully controlling the spread of the virus. Employers should stay safe in public spaces and workplaces by following 'COVID-19 secure' guidelines.

With the emergence from lockdown becoming clearer, businesses will need to start to put plans and COVID-19 policies in place for their employees to go back to the workplace safely. It is advisable for all workplaces to adapt their workplace HR policies, procedures and practices to comply with the COVID-19 related safety guidelines.

Unable to attend?

If you are unable to attend the webinar at the specified time, simply register for the webinar anyway and we will send you the recording afterwards. You can also click here to view more webinar dates.

Posted byRachel HynesinCoronavirus

Advisory Fuel Rates updated from 1st June 2020

HMRC has issued details regarding the latest Advisory Fuel Rates for company cars. From the 1st June 2020 employers may use the old rates or new rates for one month. Employers are under no obligation to make supplementary payments to reflect the new rates but can do so if they wish. Hybrid cars are treated as either petrol or diesel cars for this purpose for the fuel rates.

The rates are as below:

For fully electric cars the Advisory Electricity Rate is 4 pence per mile. But electricity is not a fuel for car fuel benefit purposes.

Click here to see all details per HMRC

Posted byDebbie ClarkeinPayroll