Whilst many employers are opening up, there are still many relying on the Coronavirus Job Retention Scheme to support their businesses and employees.
Reduction in level of support
From 1 July, the level of the grant will be reduced and employers will be asked to contribute towards the cost of furloughed employees’ wages. To be eligible for the grant employers must continue to pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough as well as the employers national insurance and pension contributions.
From 1 July 2021
Employers are required to contribute 10% of the 80% (capped at £312.50 per month) government contributing 70% of the 80% (capped at £2,187.50 per month).
From 1 August 2021, until the scheme is due to end 30 September 2021
Employer contributions rise to 20% of the 80% (capped at £625 per month) government contributing 60% of the 80% (capped at £1,875 per month).
Also from 1 May 2021 onwards, employers can claim for employees who had been employed and were on the employers PAYE payroll on 2 March 2021. The employer must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying HMRC of the earnings for the eligible employee. This may mean that employees you previously haven’t been able to claim for now fit the criteria.
If you have any questions on the above please call Marianne Price on 01803 296678