Flexible Furlough Update
On 13 November 2020, HM Treasury published a new Treasury direction which sets out details of the extended Coronavirus Job Retention Scheme (CJRS) or “furlough scheme” to 31 January 2021.
This sets out the extension of employers being able to furlough employees on a flexible basis. The level of support available under the extended scheme, which runs until 30 April 2021, will initially mirror that available under the CJRS in August, with the government paying 80% of wages for hours not worked up to a cap of £2,500 per month for claim periods running to 31 January 2021. Employers will need to cover employer NICs and employer pension contributions on all amounts paid to an employee (including those amounts covered by the CJRS grants).
Some important changes from the previous version of the CJRS have been implemented, we have set out the main ones below:
1. HMRC will publish information about CJRS claims on the internet. This includes the name of the employer and a “reasonable indication” of the amount claimed.
2. Claims may no longer be made in respect of any period where an employee is serving either a statutory or contractual notice period.
3. The rules of the CJRS now specify tight timescales for lodging a claim with HMRC. Effectively, the claim has to be submitted within two weeks of the end of the previous calendar month, unless there is a “reasonable excuse for failing to make a claim in time”. The time limits are as follows:
|Month in which furlough days fall||Claim must be submitted by|
|December 2020||14 January 2021|
|January 2021||15 February 2021|
|February 2021||15 March 2021|
|March 2021||14 April 2021|