5 November Announcements

No real fireworks, but not a damp squib either, there were a raft of new announcements today.

Coronavirus Job Retention Scheme 

The Coronavirus Job Retention Scheme (CJRS) will now run until the end of March with employees receiving 80% of their current salary for hours not worked up to  maximum of £2,500 per month. Employers will be asked to cover National Insurance and employer pension contributions for hours not worked but there will be no employer contribution of wages for hours not worked.

Employees can be fully furloughed or furloughed for a portion of working time.   An employer can claim under this new extended scheme for employees who were employed and on their payroll on 30 October 2020 and for who a RTI submission has been made between 20 March 2020 and 30 October 2020.

Employees who were employed and on the payroll on 23 Sept 2020 who were made redundant or stopped working afterwards can be re-employed and claimed for providing there was a RTI submission made between 20 March 2020 and 23 Sept 2020.

Details of employers utilising the scheme will be published.

The CJRS extension will be reviewed in January to examine whether the economic circumstances are improving enough for employers to be asked to increase contributions. 

Given employees may still be furloughed at the end of January, the Jobs Retention Bonus (JRB) will not be paid in February however there is still an intention to pay a retention incentive at the appropriate time. 

The Job Support Scheme (open and closed) announced over the past couple of weeks has been postponed, and it remains to be seen whether it will be utilised later into next year.

This extended CJRS will operate in the same way as CJRS 2 has, with claims being available shortly before, or after the relevant payroll has been run.  The portal for claims will be open from 8 am Wednesday 11 November.

However, there is one very key point : claims made for November must be submitted no later than 14 December 2020 and claims for each month must be submitted by day 14 of the following month.  This is a very short time limit and puts company’s and payroll departments under unnecessary time pressure.

Full guidance on this extended scheme are to be published on Tuesday 10 November 2020.

The Self Employment Income Support Scheme

The support provided through the Self-Employment Income Support Scheme (SEISS) will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.

The window for claiming this grant will open on 30 November 2020 so the grant should be paid pre-Christmas.

There will be a fourth SEIS grant to cover Feb to April with details to be set out in the future.