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Coronavirus Job Retention Scheme (furlough) update – August 2021

Coronavirus Job Retention Scheme (furlough) update – August 2021

23 July 2021

Coronavirus Job Retention Scheme claims now open for July

CJRS claims for July can now be submitted and must be made by Monday 16 August.

You can claim 70% of your furloughed employees’ usual wages for the hours not worked, up to a cap of £2,187.50 per month. You’ll need to pay the difference, so that you continue to pay your furloughed employees at least 80% of their usual wages in total for the hours they do not work, up to a cap of £2,500 a month.

You can still choose to top up your employees’ wages above the 80% level or cap for each month if you wish, at your own expense.

To help you plan ahead, you can find a list of monthly claims deadlines on GOV.UK by clicking here.

Conditions of claiming CJRS grants

You must pay the associated employee tax and National Insurance contributions to HMRC. This is a condition of applying for the grant, so not doing so will mean you’ll need to repay the whole of the CJRS grant and you may not be able to claim for future CJRS grants.

If you are having difficulties paying any of your tax liabilities to HMRC, they will work with you to explore affordable payment options – for example, through a payment plan where you can pay in instalments. Click here to find out more.

What you need to do now

1. Work out how much you can claim and the difference you’ll need to pay using our CJRS calculator and examples by clicking here.

2. Submit any claims for June no later than Monday 16th August.

3. Keep records that support the amount of CJRS grants you claim, in case HMRC needs to check them.

4. Make sure you’re paying employee tax and National Insurance contributions to HMRC and contact them if you’re struggling to pay.

Changes to the CJRS from August

From 1 August to 30 September (when the scheme closes), the UK Government will pay 60% of employees’ usual wages for hours not worked, up to a cap of £1,875. You’ll need to continue to pay the difference, so that you pay your furloughed employees at least 80% of their usual wages in total for the hours they do not work, up to a cap of £2,500 a month.

HMRC scams

HMRC are aware of recent increases in scam phone calls, emails and texts. If someone contacts you or your employees claiming to be from HMRC saying that you owe tax and face arrest, are due a tax refund, that your National Insurance number has been compromised or asking you to transfer money or give bank or other personal details, it might be a scam.

Use HMRC’s scams checklist to find out how to report tax scams. You can also access the National Cyber Security Centre’s new guide on how to stay secure online and protect yourself or your business against cybercrime by visiting the Cyber Aware website.

Where can I get further support?

HMRC’s webinars offer information on the CJRS and other government support, and how they apply to you. Click here to book online, or to view updated guidance. If you’re booked on a webinar but can no longer attend, please cancel your place to allow space for others to register.

There’s a list of monthly claims deadlines and a helpful step-by-step guide on GOV.UK, summarising the latest information on the CJRS and the steps you need to take to make a claim – you can find these here.

To find out what other financial support may be available for you and your business as part of the UK Government’s Plan for Jobs, click here.

If you need further assistance with any aspect of furlough, the IGA Member Helpline team is here to help. Call us on 01788 225 908, or email enquiries@rmif.co.uk.