HMRC’s guidance on the Coronavirus Job Retention Scheme has been updated a number of times as the workings of the scheme evolve. The most recent update, on 29 May 2020, followed an announcement by the Chancellor, Rishi Sunak.

The Chancellor outlined further details on the extension of the scheme to 31 October 2020 and the introduction of flexible furloughing. As things stand the extension will be final and the scheme will be closed on 31 October 2020. 

The government support for the scheme will continue but employer costs of the using the scheme will slowly increase from July.

We have summarised the main points below:

• In June and July, the government will continue to pay 80% of costs up to £2,500 cap.
• From 1 July, employers can bring back employees to work part-time, for any amount of time and any shift pattern. Any claim under CJRS will be limited to normal hours not worked. Employers will have to pay employees for the hours they work.
• From 1 August, government support for the scheme will begin to reduce. The government will continue to pay 80% of wages up to £2,500 cap, but employers will have to cover employers’ NIC and pension costs for the hours the employee does not work.
• From 1 September, government support will be lowered to 70% of wages up to a reduced £2,187.50 cap. Employers will pay employers’ NIC, pension costs plus 10% of wages to a total cap of £2,500 for furloughed workers time.
• From 1 October, government support will be lowered further to 60% of wages up to a reduced £1,875 cap. Employers will pay employers’ NIC, pension costs plus 20% of wages to a total cap of £2,500 for furloughed workers time.
• The cap will be proportional to hours not worked.
• The CJRS will be closed-down 31 October 2020.