Coronavirus Job Retention scheme extended until the end of 30 April 2021
Coronavirus Job Retention Scheme extended: In a statement to the House of Commons on 5 November, UK Chancellor Rishi Sunak confirmed that he will extend the furlough scheme until the end of March 2021.
The Chancellor went further yesterday (17 December), and confirmed he would extend the furlough scheme for an additional month as part of the government’s plan for the next phase of its response to the coronavirus outbreak.
Est. reading time: 2:00 minutes
Updated: 18 December 2020
Coronavirus Job Retention Scheme now open for applications until 30 April 2021.
Following Prime Minister Boris Johnson’s recent announcement (31 October 2020) on further restrictions and UK Chancellor Rishi Sunak’s statement to UK Parliament on 5 November, the nationwide Coronavirus Job Retention Scheme will be extended until March 2021.
Under the extension, the Government will continue to cover 80% of furloughed workers’ wages up to £2,500. However, the cost for employers of retaining workers will be reduced compared to the latest iteration of the scheme which ended on 31 October.
The scheme is open for all employees full or part-time who were on the employer’s PAYE payroll and on a Real Time Information submission to HMRC on or before 30 October. Further details on this will be released shortly.
The CJRS went live on 20 April 2020 to support businesses hit by the coronavirus outbreak (COVID-19) by ensuring employers can continue to pay wages for furloughed members of staff.
Initial alterations to the furlough scheme were subsequently announced on 12 June 2020. The full details of these changes are available via this link to the Government’s website Changes to the Coronavirus Job Retention Scheme.
Related article | Practical ways to support employees through COVID-19
The extension to the CJRS mirrors the way the previous scheme operated, with businesses being paid upfront to cover the costs of wages.
- The level of the grant will reflect levels available under the CJRS in August, so the government will pay 80% of wages, capped at £2,500, and employers will pay employer National Insurance Contributions and pension contributions only for the hours the employee does not work.
- Similarly, as per the current CJRS, flexible furloughing and full-time furloughing are allowed.
Claims for furlough days in December 2020 must be made by 14 January 2021.
You can no longer submit claims for claim periods ending on or before 31 October 2020.
From December, HMRC is planning to publish employer information for those who submit claims from 1 December 2020, including:
- the employer name
- an indication of the value of the claim
- the company number for companies and Limited Liability Partnerships (LLPs)
Related article| How to manage working capital and cash flow during a crisis
Updated (18 December 2020): Application deadlines extended for government-backed loans
In addition to the changes to the duration of the furlough scheme, further announcements related to the extension of existing support packages were also unveiled yesterday (17 December).
Businesses will have until the end of March to access government-guaranteed loan schemes, including the Bounce Back Loan Scheme, Coronavirus Business Interruption Loans and the Coronavirus Large Business Interruption Loan Scheme.
The Future Fund, aimed at innovative UK startups, has also been extended until 31 January 2021. According to the latest statistics released by the British Business Bank yesterday (17 December), the institution responsible for administering the fund, since the initiative launched in May 2020, 971 companies have been issued with Convertible Loan Agreements with a total value of £975.5m.
(Image source: Matt Seymour on Unsplash)