21 Jun Changes to the Job Retention Scheme from July 21
Changes to the CJRS from July
The UK Government will continue to pay 80% of furloughed employees’ usual wages for the hours not worked through the Job Retention Scheme, up to a cap of £2,500 per month, to the end of this month (June 2021).
In July 21, the Job retention Scheme 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 pay the 10% difference in July, and 20% in August and September, so that they continue to pay their 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.
For the hours not worked you as an employer can choose to top up your employees’ wages above the 80% level or cap for each month if they wish, at your own expense.
You can plan ahead for future claim periods by using the HMRC CJRS calculator to help you work out how much you can claim for employees in June, July, August and September.
If you would like help with your payroll processing please get in touch. We work with a wide range of businesses from single director payrolls to payrolls with 100+ employees. We can help with holiday pay, SMP or Paternity pay, Student loans and all things payroll.
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 pay slips or printed – depending on what you would like. Find out more about our payroll services here.