Coronavirus Job Retention Scheme (CJRS), Update

The Coronavirus Job Retention Scheme (CJRS) has been extended until 30 September 2021, providing a prolonged level of support for employers whose businesses remain negatively impacted by coronavirus.

The level of grant available through the CJRS will remain the same until 30 June 2021.

What level of grant will employers receive?

From 1 July 2021, the level of government grant available for employee hours not worked will vary.

However, throughout each of these periods the employee must continue to receive 80% of their salary for hours not worked, up to £2,500 per month.

Employers can continue to choose to top up employees’ wages above the 80% / £2,500 cap at their own expense.

For periods ending on or before 30 June 2021

• Employers can claim 80% of an employee’s usual salary for hours not worked;
• Up to a maximum of £2,500 per month; and
• Employers will be asked to cover National Insurance and employer pension contributions.

For the period 1 July – 31 July 2021

• Employers can claim 70% of an employee’s usual salary for hours not worked;
• Up to a maximum of £2,187.50;
• Employers will be asked to contribute 10% of an employee’s usual salary for hours not worked;
• Up to a maximum of £312.50 per month; and
• Employers will be asked to cover National Insurance and employer pension contributions.

For the period 1 August – 31 August 2021

• Employers can claim 60% of an employee’s usual salary for hours not worked;
• Up to a maximum of £1,875;
• Employers will be asked to contribute 20% of an employee’s usual salary for hours not worked;
• Up to a maximum of £625 per month; and
• Employers will be asked to cover National Insurance and employer pension contributions.

For the period 1 September – 30 September 2021

• Employers can claim 60% of an employee’s usual salary for hours not worked;
• Up to a maximum of £1,875;
• Employers will be asked to contribute 20% of an employee’s usual salary for hours not worked;
• Up to a maximum of £625 per month; and
• Employers will be asked to cover National Insurance and employer pension contributions.

What are the eligibility criteria for making a claim?

For periods ending on or before 30 April 2021

• Employers can claim for employees who were employed on 30 October 2020, as long as a PAYE RTI submission was made to HMRC between 20 March and 30 October 2020, notifying a payment of earnings for that employee; and
• There is no requirement for an employer to have previously claimed for the employee prior to 30 October 2020.

For periods starting on or after 1 May 2021

• Employers can claim for employees who were employed on 2 March 2021, as long as a PAYE RTI submission was made to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee; and
• There is no requirement for an employer to have previously claimed for the employee prior to 2 March 2021.

Calculating a claim

Prior to submitting a claim to HMRC, employers are required to calculate how much they can claim through CJRS.

Employers must work out

• The length of the claim period (the start date of your claim period is the date your first employee was furloughed);
• What should be included when calculating the employee’s wages; and
• The employee’s usual hours and furloughed hours.

The CJRS calculator can be used to work out the figures required when making a claim. It should be used for each employee on full and flexible furlough, with the results added up for each claim period.

Click here to access the calculator.

Claims can be made before, during or after payroll is processed, as long as they are submitted by the relevant claims deadline. Payments are made six working days after a claim is made.

Monthly claim deadlines

Claims must be submitted by 11.59pm on the dates below.

14 April: final date to submit claims for March
14 May: final date to submit claims for April
14 June: final date to submit claims for May
14 July: final date to submit claims for June
16 August: final date to submit claims for July
14 September: final date to submit claims for August
14 October: final date to submit claims for September.

The maximum wage amount

The upper limit for the amount that can be claimed for an employee’s wage is £2,500 a month, or £576.92 a week.

To calculate the maximum amount, multiply the daily maximum wage amount by the number of calendar days an employee is furloughed for.

The daily maximum amount for March is £80.65 per day and £83.34 for April. Daily maximum wage amounts for periods starting after 1 May will be provided as they are released.

Making a claim

Make a claim here, by clicking on the ‘Claim now’ button.

To make a claim you will need the Government Gateway ID and password received when you registered for PAYE online.

Records must be kept for six years, to support the amount of CJRS grants that are claimed.

Click here to find out what to do if too much has been claimed. 

Click here to find out what to do if not enough has been claimed. 

For assistance with operating your payroll or calculating your claim, please get in touch with your usual M+A Partners contact or email CJRSSupport@mapartners.co.uk or payroll@mapartners.co.uk

For further information on the extended CJRS, please download our factsheet below.