“The UK government introduced Coronavirus Job Retention Scheme to help the employees during the COVID-19 pandemic.”
CJRS implies that an employer should give eighty per cent of the staff wage or employment cost per month for the time not worked in actual. It can be claimed by the end of September, 2021.
The grant amount has been varied with the passage of months. Before July, 2021 about 80% of the grant is funded by the government with a maximum cap of £2,500. But, from July 1, 2021 the amount of grant will be reduced to 70%. The amount will be actually contributed to the furlough payments. It’s imperative to keep track of furloughed days and their claiming dates, because claims would not be entertained by HMRC for furloughed periods after Oct 31, 2020.
Wage caps are proportional to the hours not worked.
| May | June | July | August | September | |
|---|---|---|---|---|---|
|
Government contribution: wages for hours not worked |
80% up to £2,500 |
80% up to £2,500 |
70% up to £2,187.50 |
60% up to £1,875 |
60% up to £1,875 |
|
Employer contribution: employer National
Insurance contributions and pension contributions |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Employer contribution wages for hours
not worked |
No |
No |
10% up to £312.50 |
20% up to £625 |
20% up to £625 |
|
For hours not worked employee receives |
80% up to £2,500 per month |
80% up to £2,500 per month |
80% up to £2,500 per month |
80% up to £2,500 per month |
80% up to £2,500 per month |
Obviously, people claiming specific charges must follow some crucial requirements. The person hoping to get facilitated from the opportunity should have
- PAYE payroll scheme in progress before or on October 30, 2020
- PAYE payroll scheme in progress before or on March 2, 2020
- PAYE online registration or account
- UK, Chanel Island bank account, or the Isle of Man
“In order to claim relief from the CJRS, one should comply to the requirements set by the government.”
You might be thinking what is the eligibility criteria to claim this grant? Employees who were on their company payroll before February 28, 2021, can indeed claim it. However, the government introduced this scheme to aid the employees at maximum. Don’t concern yourself by asking, how should I register myself to furlough scheme, because if you listed through RTI till the end of October, 2020 then you are automatically furloughed,
Just keep in mind the mentioned points before going through the Coronavirus Job Retention Scheme:
- Length of your claim period
- What you have to consider while calculating wages
- The specific number of hours, either usual or furloughed
The general rule applies to grant a specific amount to the employees whose PAYE Real Time Information (RTI) submission to HMRC lies within the required period.
The government has set up coronavirus job retention scheme to help the employees during this pandemic. This scheme is applicable till September 30, 2021. The purpose of this scheme is to facilitate the working class at maximum.
If the employee is not working, he cannot claim the specific charge and receive the exact amount for his work hours. You can also use CJRS calculator to know the exact amount of grant waiting for you! Remember to keep all your records within reach as they could be asked of anytime
“CJRS grant can be claimed by September 30, 2021.”
HMRC will be flexible in accepting your claims if you fall behind due to some authentic reasons. For example, they can accept your late claims if the excuse falls in an essential category like your relative died, or you were in a hospital, etc.
So, keep an eye on your monthly dates to know whether it’s time to claim your grant or not. Then, help the government to help you by following this Coronavirus Job Retention Scheme!
References
https://commonslibrary.parliament.uk/research-briefings/cbp-9178/
https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme
Job Retention Scheme Calculator. (n.d.). Retrieved from Gov.uk: https://www.tax.service.gov.uk/job-retention-scheme-calculator/claim-period-start
