11 May Furlough Update May 2021
CJRS Update – May 2021
CJRS eligibility from May
For periods from 1 May 2021 onwards, you will be able to claim for eligible employees who were employed by you and on your PAYE payroll on 2 March 2021.
This means you must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying HMRC of earnings for that employee.
Your employees do not need to have benefited from the scheme before to make a claim, as long as you meet the eligibility criteria.
The UK Government will continue to pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, up to the end of June 2021.
For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.
Employers will need to continue to pay furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. This means, for periods between July and September, employers will need to fund the difference between this and the CJRS grants yourself. Wages can be topped up above the 80% if the employer wishes, but you are not required to do so.
The employer must continue to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay their own funds.
There is detailed guidance to help you claim through the CJRS and key deadlines you need to be aware of:
- April 2021 claims must be submitted no later than Friday 14 May 2021
We have been working with clients and calculating furlough since March 2020 and know all about the calculations and requirements. If you find it all confusing and need help then please get in touch.
Find out how we can help you free up you time to focus on your business. We can manage your payroll function by ensuring we file and report on time and accurately. We can offer digital payslips or printed – depending on what you would like. Find out more about our payroll services here.