How the CJRS is changing

HMRC has updated its guidance on the Coronavirus Job Retention Scheme (CJRS) to advise how it will change from 1 July.

As outlined in our blog of 1 June, the CJRS was recently amended to stimulate the return to work, allowing employees to come back on a part-time basis. This next phase will cover claims for employees furloughed from 1 July until the scheme ends on 31 October 2020.

It is to be noted that different rules apply for the two time periods covered by the CJRS. Here we summarise the key points relating to each of these. 

1 March 2020 to 30 June 2020

• Employees must be fully furloughed. No working is allowed
• The minimum furlough period for an employee is 21 days
• No new employee can be admitted to the scheme after 30 June. As detailed in our recent blog, this means that 10 June 2020 is the last day on which someone who has never been furloughed can start a period of furlough and qualify for their wages to be covered by the CJRS. The exception are employees on statutory parental leave who return to work after a long period of absence – they can be furloughed even if they return after 10 June. This only applies if their employer has previously furloughed employees.
• 31 July is the final date for submitting claims in this first stage of CJRS

1 July 2020 to 31 October 2020

• From 1 July employers can only claim for employees they have previously furloughed under CJRS
• Part-time working is permissible (flexible furloughing)
• There is no minimum furlough period
• Furlough claims require more information to be submitted, including details of hours worked
• Each claim made by an employer must be for at least a week 
• No claim period can extend across a calendar month end

Getting in touch with HMRC

Because of the high volume of calls they are receiving, HMRC notes on its website that they should not be contacted ‘unless it has been more than 10 working days since you made the claim and you have not received it in that time.’

Please see the GOV.UK website for full details about eligibility and how to claim, whether directly or through an agent.

About the Author

Alison Henshaw

Partner

 Alison joined Torgersens in 1996 and has been a partner with the firm since 2015. With broad experience in general practice, Alison is involved in the audits and accounts management of a range of clients including small and medium sized owner-managed companies, charities and not-for-profit organisations. Most recently, she has worked with a high-profile regional charity to develop its financial systems and reporting structures. Outside of work Alison likes spending time with her family enjoying walks along the North East coast line as well as regular visits to the Lake District, Northumberland and North Scotland.

To get in touch please e-mail alison.henshaw@torgersens.com.