Furlough has been extended


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The Coronavirus Job Retention Scheme (CJRS) was due to end on 31 October and be replaced by the Job Support Scheme.

However, in view of the new monthly lockdown proposed for Thursday 5 November, the CJRS has now been extended to December (no specific date has yet been provided) to provide support to businesses and employees.

Who can use the new scheme?

Neither the employer nor the employee needs to have previously used the CJRS to use the extended scheme, and the extended scheme is available to all employees who were on the employer's PAYE payroll by 23:59 on 30 October 2020.  This means that people who were made redundant at the end of October when the CJRS was due to end, may be able to access the scheme.

What are the benefits?

The support available under the extended scheme mirrors that which was available under the CJRS in August, so the government will pay 80% of wages up to a cap of £2,500.  Employers can top up furloughed pay to 100% if they wish.

Can we have flexible furlough?

Employers will be able to choose either furlough full-time or on a flexible basis.  As a brief reminder under flexible furlough employers will be able to bring these employees back to work for any amount of time and any shift pattern.  While the employer will still be able to claim under the CJRS for those employees' normal hours not worked, it will have to pay in full for any hours worked and will be responsible for the tax and NI contributions on that.  When claiming the grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.  

When can we claim for the costs?

The government has stated that it will confirm shortly when claims can first be made in respect of employee wage costs during November, but has made it clear that there will be no gap in eligibility for support between the previously announced end-date of the CJRS of 31 October and the extended scheme. 

What about the Job Support Scheme?

The Job Support Scheme (JSS) which was supposed to be coming into effect on 1 November, has been postponed until the CJRS ends.  As mentioned above, this is due to be in December, though there is no specific date as yet.

What about the details?

We're now waiting for the guidance on this and we'll keep you posted.

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