Coronavirus Job Retention Scheme (CJRS) - update 2 November 2020

Employment Tax, HR Solutions, Human Capital Advisory

The government’s Coronavirus Job Retention Scheme (CJRS) will now remain open until December.

  • The level of the grant will relate to the pay for unworked hours and will increase from the current level to 80% of normal regular contractual wages, up to the usual £2,500 cap.
  • Employers will therefore still need to pay:
  • Employer National Insurance Contributions (NICs), and
  • Pension contributions
  • Flexible furloughing will be allowed in addition to fulltime furloughing.
  • Neither the employer nor the employee needs to have previously used the CJRS that was in place from March to October.
  • There will be no gap in eligibility for support between CJRS schemes.

While the government updates the system, employers will submit their wage claim to the government, and be refunded afterwards. After that, they will be paid upfront to cover the cost.

Further details, including when claims can first be made in respect wage costs during November and how to claim this extended support through an updated claims service will be provided shortly.

It is still unclear what reference pay will be applied, as there are now ‘new’ employees able to participate.

The working assumption is that, like the delayed JSS arrangements, it will be the higher of the normal regular contractual pay at 19th March or at 30th October. We will advise as soon as this is clarified or confirmed.

Qualification is as previously, but as a reminder:

  • Employers must have:
  • A UK bank account and
  • A UK PAYE scheme
  • Agree any working arrangements with employees.
  • Eligible employees are:
  • Those on an Employer’s PAYE payroll by 23:59 on 30th October 2020. This means employees included in a Real Time Information (RTI) submission notifying payment for that employee to HMRC on or before 30th October 2020
  • Employees can be on any type of contract. The Job Support Scheme, which was scheduled to commence on Sunday 1st November, has been postponed.

When the CJRS ends, the proposal is that regions will then be classed into tiers as before, based on their coronavirus risk level.

We will provide a further update when more details are known, but if you have queries in the meantime please contact:

Nigel Morris, Employment Tax Director,
E: nigel.morris@mhllp.co.uk
T: 07718 340634
Richard Maitland, Employment Tax Partner,
E: Richard.maitland@mhllp.co.uk
T: 07711 373584
Stephanie Pote or
Colin O’Kane, Senior HR Consultants,

E: HRSolutions@mhllp.co.uk

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COVID-19 Coronavirus Job Retention Scheme extended to December and New JSS schemes delayed



Employment Tax, HR Solutions, Human Capital Advisory