The Coronavirus Job Retention Scheme changes from 1 July 2021 with employers needing to top up wages by 10% for July. Employees must receive 80% of their normal salary although only 70% can be claimed as a CJRS grant. You can, of course, still pay your employee 100% of their wages despite only being able to claim back 70%. The calculation of the claim will be based, as before, on the employees wages at a given date. The rules for calculation and eligibility are complex and more detailed information can be found on HMRC website.
From 1 August to 30 September 2021
Employers will be expected to top up their employees' wages by 20% during August and September to give them 80% of their salary but will only be able to claim back 60%.
Employers National Insurance and Pension Contributions
The employer must still pay the amount due for Employers NI and Pension contributions on the 80% (or 100%) of salary.
Employees can still be fully or flexi furloughed during the final three months of the scheme. Flexi furlough calculations must take into accounts hours worked against hours normally worked and again only 70% in July and 60% in August and September of the hours not worked can be claimed.
CJRS Scheme Ceases
At the time of writing CJRS ceases at the end of September 2021.
HMRC have said that furlough claims will not be paid out until any backlog of PAYE payments are made. Businesses who owe 9 months or more of PAYE have been sent letters advising them of this.