Job Retention Scheme Updates

The Job Retention Scheme has now been extended until March 2021. For claims running to January 2021, employees will receive 80% of their usual salary for hours not worked up to a maximum of £2,500 per month. The employer will need to cover all employer’s NI and pension contributions. The government will review in January with a view to employers contributing more.

You do not need to have previously used the scheme, and all employers are eligible. If your employees are working partial hours, you can use flexible furloughing. As per the original scheme, you’ll need to ensure you have the correct agreements in place with your employees. See this page for details.

You can make a claim for employees who were employed and on your payroll on 30th October 2020. The employees must have been set up in your inniAccounts payroll between 20th March 2020 and 30th October 2020. This will have allowed us to make Real Time Information (RTI) submissions to HMRC on your behalf.

If you’ve not previously furloughed an employee, use the following as the basis for your calculation:

  • If they’re paid a fixed salary – 80% of wages payable in last pay period ending on or before 30 October 2020
  • If they’re paid a variable amount – 80% of average pay between the start date of employment (or 6 April 2020 if later) and the day before furlough begins

If you have previously furloughed an employee:

  • Use the CJRS calculations as applied in August 2020 for reference pay and usual hours

All claims must be made within 14 days of the following month. For example, to claim for November 2020 it must be made by 14th December 2020. Note: the amount of time you have to claim has recently reduced.

Next → Up next in this guide: Job Support Scheme

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We're a multi-award winning, innovative accountancy practice who use cloud technology to deliver an efficient, accurate and reliable accountancy service to contractors, freelancers and small businesses.

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