CJRS: The final phase
Launched at the start of the Covid-19 pandemic, the Coronavirus Job Retention Scheme (CJRS) has been an instrumental part of the government’s strategy to protect businesses and jobs during this challenging period. There have been some alterations to the CJRS along the way, and the scheme now provides furloughed and flexibly furloughed employees with grants equal to 80% of their ‘usual’ pay for their unworked hours.
The final phase of the CJRS runs from 1 May 2021 to 30 September 2021.
To benefit from a grant in the final phase of the scheme, a claim does not have to have been made previously for that employee, nor does the employer have to have made a prior claim. However, the employee does have to have been on the payroll since at least midnight on 2nd March 2021, and HMRC notified of a payment of earnings for that employee at least once since 20th March 2020 and 2nd March 2021.
Claims during May and June 2021
For May and June 2021, employees who are fully or flexibly furloughed will continue to receive a grant of 80% of their usual pay for their unworked hours, and the employer can continue to claim the full amount payable to the employee from the Government under the CJRS (subject to a cap per employee of £2500 per month). This is proportionately reduced where the employee is not fully furloughed for the whole month. If the employee is flexibly furloughed, the employer must pay them at their usual rate, for any hours that they work.
Claims during July 2021
For July 2021, the amount that employees receive remains the same, however the employer is only able to claim a grant under the CJRS of 70% of the employee’s usual pay. The employer must make up the difference between the amount claimed and the amount that the employee is entitled to receive under the scheme. If the employee is flexibly furloughed, the employer continues to be responsible for paying them in full for the hours that they work at their usual rate.
Claims during August and September 2021
For the final two months of the CJRS – August and September 2021 – the amount that the employer can claim is further reduced, increasing the amount of their employees’ grants that they must fund. The employee will receive 80% of their usual pay, but the employer can only claim back 60% through the CJRS, and must make up the difference themselves. As in previous months, the employer must also pay the employee in full for any hours that they work.
Claim deadlines
Claims under the CJRS must be made for a calendar month and the claim must be made by the 14th of the following month, or by the following working day where this falls on a weekend. Claims should be made via the online portal on the gov.uk website.