The extension of financial support under the Coronavirus Job Retention Scheme (CJRS) will now run past the original new cut-off of 2 December through to the end of March. Provision is at the same level as that given for August, with employees receiving 80% of their salary for hours not worked, capped at £2,500 a month. Employers must cover National Insurance contributions (NICs) and workplace pension costs.
The two new job support schemes (JSS Closed and JSS Open) set out in the Chancellor’s Winter Economy Plan will now not take effect, if at all, until the furlough scheme ends.
One important difference from the previous furlough scheme is that claims can be made for employees notified to HMRC with a real time information (RTI) submission by 30 October. Otherwise, the extension is similar to the old scheme:
The extension will be reviewed again in January 2021 to determine whether there is scope to increase employer contributions, depending on economic circumstances.
Author: Sue Hancock