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Coronavirus Job Retention Scheme (Furlough) Update – September 2020

Coronavirus Job Retention Scheme (Furlough) Update – September 2020

28 August 2020

From 1 September 2020, the Coronavirus Job Retention Scheme (CJRS) will pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.

You will still need to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You will need to fund the difference between this and the CJRS grant yourself.

The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in September, you are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).

You will continue to have to pay furloughed employees’ National Insurance (NI) and pension contributions from your own funds.

From 1 October, CJRS contributions will be lowered again to 60% of usual wages, and the scheme is expected to end on 31 October.

Full details on the changes to the scheme and how to calculate your claim can be found on the gov.uk website here.

Webinars

HMRC are holding live webinars offering more support on changes to the scheme, so their phone lines can remain open for those who need it most. Click here to register for an upcoming webinar.

Prepare for the Job Retention Bonus

The Job Retention Bonus is a one-off payment of £1,000 to employers for each furloughed employee who remains employed until 31 January 2021.

If you intend to claim it, you should ensure that your employee records are up-to-date, including accurately reporting employee’s details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system. You should also make sure all Coronavirus Job Retention Scheme claims have been accurately submitted and any necessary amendments have been notified to HMRC.

You can read more details about the scheme on the gov.uk website by clicking here.

HMRC’s Employer Bulletin

Click here to download HMRC’s latest Employer Bulletin, which features further CJRS guidance, plus updates on workplace pension contributions, the new law to ensure furloughed employees receive full statutory redundancy payments, the deadline to report the disguised remuneration loan charge, the latest on off-payroll working rules, VAT updates and more.

National Minimum Wage Reminder

If you are unfurloughing staff, you must pay staff the new National Minimum Wage Rate that came into force on 1 April 2020. Click here for more information on the new rates.

Protect yourself from scams

Stay vigilant about scams which mimic government messages as a way of appearing authentic and unthreatening. Click here for information on how to recognise genuine HMRC contacts.

You can forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599. Please also let the IGA know if you have been targeted by a scam so we can make other members aware.

If you need further assistance with any aspect of furlough, the IGA Member Helpline team is here to help. Call the direct member helpline or 0845 305 4230, or email enquiries@rmif.co.uk.