SOMEWHAT BELATEDLY, the embattled UK government announced on 31 October that from Thursday 5th November 2020, England will go into lockdown and businesses such as non-essential retail and hospitality will close. At Shipleys Tax we have summarised how the extension will work below.

The overly complicated Job Support Scheme (JSS), which was due to launch on 1 November, will now be postponed.

Instead, the government will extend the Coronavirus Job Retention Scheme (CJRS/furlough scheme) until December, to help employers furlough their staff. Crucially, this new extension allows new claims to be made where previously this was denied.

The furlough scheme extension

• The Coronavirus Job Retention Scheme (CJRS) will now remain open until Wednesday 2 December and the JSS will be postponed.
• The extended CJRS will operate as before, with businesses being paid upfront to cover wage costs. Although initially, while HMRC update their systems, businesses will be paid in arrears.
• Employers do not need to have furloughed staff before to claim under this extended scheme.
• Employees must have been on the employer’s PAYE payroll by 23:59 on 30 October 2020.
• Full furlough grants will cover 80% of staff pay, to a maximum of £2,500 per person, per month. However, employers will need to pay National Insurance and pension contributions. 
• Flexible furloughing and full-time furloughing will be allowed. Useful for employers that stay open but operate with fewer hours.
• A Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30 October 2020.
• Employers may top-up employee wages above the scheme grant at their own expense if they wish.
• There will be no gap in eligibility for support between the previously announced end date of the CJRS and this extension.

If you are affected by any of the issues above and would like more information, please call 0114 272 4984 or email info@shipleystax.com.

Please note that we do not give free advice by email or telephone.