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Employers prepare to move to Job Support Scheme as Coronavirus Job Retention Scheme winds down

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Employers prepare to move to Job Support Scheme as Coronavirus Job Retention Scheme winds down

Employers currently using the Coronavirus Job Retention Scheme (CJRS) should prepare to transition to the new Job Support Scheme from the start of next month, HM Revenue & Customs (HMRC) has said.

According to the new guidance, employers taking advantage of the CJRS will need to make any final claims on or before 30 November 2020, after the existing scheme ends on 31 October. After this date, employers will not be able to submit or add any claims.

The extended Job Support Scheme will replace the CJRS on 01 November and will run for at least six months. Under the new initiative, the Government will contribute towards the wages of employees who are working “fewer than normal hours due to decreased demand”.

Employers will still be required to pay the wages for the hours staff work, but for any hours not worked, the employer and the Government will each pay one third of their usual wages – capped at a maximum £697.92 per month – meaning the employee will receive at least two thirds of their usual wages for hours not worked.

Notably, employers will still be liable for their National Insurance and statutory pension contributions.

Employers will be able to make their first claim under the Job Support Scheme in December and every month thereafter.

For more CJRS and Job Support Scheme advice, please get in touch with our expert team today.

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