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Coronavirus Job Retention Scheme (furlough) update – June 2021

Coronavirus Job Retention Scheme (furlough) update – June 2021

28 May 2021

Coronavirus Job Retention Scheme claims now open for May

CJRS claims for periods in May can be submitted now, and must be made by Monday 14 June.

You can claim before, during or after you process your payroll. If you can, it’s best to make a claim once you’re sure of the exact number of hours your employees will work so you don’t have to amend your claim later.

Check if you and your employees are eligible and work out how much you can claim using the CJRS calculator and examples, 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, we will work with you to explore affordable payment options – for example, through a payment plan where you can pay over time, in instalments. Click here to find out more.

What you need to do now

1. If you haven’t submitted your claim for April but believe that you have a reasonable excuse for missing the 14 May deadline, check if you can make a late claim by clicking here.

2. Submit any claims for May no later than Monday 14 June.

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 July

The UK Government will continue to pay 80% of your furloughed employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, to the end of June.

In July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.

You will need to pay the 10% difference in July (20% in August and September) so that you continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.

For the hours not worked you can continue to choose to top up your employees’ wages above the 80% level or cap for each month, at your own expense.

To help you plan ahead for all future claim periods, the CJRS calculator is available to help you work out how much you can claim for employees. To find this and everything you need to know about the CJRS, search ‘Job Retention Scheme’ on GOV.UK.

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.