[UK ] HMRC Issues Important Updates About The Coronavirus Job Retention Scheme (CJRS)

11 JUN 2020

On the 5th of June 2020, HMRC communicated with employers who were on their distribution list to receive updates.  This is about the transition to CJRS “phase 2” and this is important communication about the CJRS so we are replicating it in case employers may not have seen it:

What you need to know now – important dates

  • The CJRS scheme will close to anyone who hasn’t been furloughed for 3 weeks by 30 June 2020. Employers will only be able to claim for employees after that if they have been furloughed for a full three-week period at any time before the end of June.
  • If employers intend to furlough an employee who hasn’t been furloughed before, they need to agree that with them and start their period of furlough on or before 10 June 2020 – this is the last day on which someone who has never been furloughed before can start a period of furlough and qualify for the scheme – this ensures the minimum three-week period is complete by 30 June 2020.
  • Employers then have until 31 July to make a claim for any periods of furlough up until 30 June – this applies to both employees furloughed for the first time and those that employers have previously furloughed and claimed for – this is for “phase 1”

The future of the scheme

  • The rules of the scheme change from 1 July 2020
  • On the 12th of June 2020, HMRC will publish full guidance on all the scheme changes on GOV.UK (search for “Coronavirus Job Retention Scheme” to find this). Webinars offering more support on the changes will also be available to book online from 12 June.  HMRC do not want employers to call for more information, as everything they need to know about the scheme changes will be published online on GOV‌.UK
  • From the 1st of July 2020, employers will have the flexibility to bring previously furloughed employees back to work part time. They can decide the hours and shift patterns they work to suit the needs of the business.  Employees will pay their wages for the time they’re in work and can apply for a scheme grant (“phase 2) to cover any of their normal hours they are still furloughed for
  • Also, for periods starting on or after the 1st of July 2020, the maximum number of employees you can claim for in any period cannot be higher than the maximum number you have claimed for in a previous period. For example, if your highest single claim for periods up to 30 June 2020 was for 100 people, employers can’t claim for more than this number in later periods
  • From the 1st of August 2020, employers will need to contribute towards the wage costs of furloughed employees until the scheme ends on the 31st of October 2020

 Global Payroll Association Comment

 We look forward to the publication of the full guidance on the 12th of June 2020.  In the meantime, the 10th of June 2020 looks to be a vitally important date for employers.