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'Press reset' on the Coronavirus Job Retention Scheme (CJRS)
We held off, and held off, because something was not quite right for the Job Support Scheme (JSS) due to start this month.
The basis of normal hours calculations was one issue – in that there wasn’t one (for employees starting this tax year). The very-much delayed claim period another. Now it seems bound for the dustbin. Gone. Kaput. Ido.
Here we are, back to the future with a spruced up Coronavirus Job Retention Scheme (CJRS), back bigger than ever and extended until the end of March 2021, with some other extended measures thrown into the pot. At least now we have some semblance of stability here, so maybe today is the day we refresh our blogs.
Let’s see what we have…
Flexible CJRS extended
The flexible CJRS is extended, paying up to 80% of an employee’s salary (back to August levels) and with the employer only contributing employers NI and pension contributions for the time not worked. Existing other terms and conditions seem to apply, we’ll go into more detail below.
SEIS Grant extended
The Self Employed Income Support Grant is also extended, payment again increased back to 80% of profits for the third grant covering November to January.
The intention of both extensions is to enable businesses recovery time beyond what is perceived to be the end of current or severe restrictions. “Evidence from the first lockdown showed that the economic effects are much longer-lasting for businesses than the duration of restrictions.” Political commentary and profane language are both inappropriate in a Blu Sky blog, but I’ll allow us a quiet “no shit, Sherlock” at that one.
Grants for closed businesses and reduced rate VAT
There are also cash grants of up to £3,000 per month for closed businesses, and the reduced rate VAT applicable for hospitality and related businesses remains until the end of March
Bounce Back Loans and CBILs extended
Existing Bounce Back Loan and CBILs are extended until the end of January (they were due to disappear at the end of November and be replaced by ‘son or daughter’ of CBILs). Mortgage payment holidays will be extended.
What’s the small print for CJRS?
Whilst its extended until the end of March, the contribution levels (from both the Treasury and the employer) will be reviewed in January.
As the scheme is extended, the proposed one-off Job Retention Bonus (JRS) due to be paid in February has joined JSS in the dustbin.
Flexible furlough continues, so the CJRS payment covers hours not worked against hours usually worked for any claim period.
Neither employer nor employee needs to have been part of a previous claim. Employees must have been on payroll (i.e. an RTI submission) on or before 30th October. Anyone made redundant after 23rd September and on RTI submissions from March to September can be re-employed and claimed for.
To help avoid what is seen as a fairly substantial fraud market here, details of employers claiming from December onwards will be published online. A substantial number of fraud investigations have been raised to date.
Need help planning for the future of your business?
Our team is here to help. We help our clients to understand the impacts of schemes such as the ones we’ve just talked about so that their businesses have the best possible chance of future success.
Get in touch on email@example.com for a chat about how we can help.
The government announcement this week has pretty much pressed the reset button on the Coronavirus Job Retention Scheme. Here's the lowdown.
So, I’ve been thinking, where do our SME clients find…