On 05 November 2020, it was announced that the Coronavirus Job Retention Scheme (CJRS) would be extended by 5 months to the end of March 2021.
Workers in the UK will receive increased support, receiving 80% of their current salary for hours not worked – a maximum of £2,500 a month. The state will put in the full 80%, with employers only covering pension and National Insurance contributions.
You can be furloughed whether you are:
In order to qualify, you must have been on the payroll by October 30 2020 though it is not necessary to have been furloughed before. You keep all your working rights, including annual and parental leave.
On top of this, there is also help available for people who recently lost their jobs but were not placed on furlough. If you were employed and on payroll on September 23 but were made redundant/stopped working, you can be re-employed and claimed for by your former employer.
Whilst on furlough, you are able to take on other jobs as long as the rules of your contract are not breached.
In order to claim the CJRS:
1.) Check if you can claim
2.) Check which employees you can out on furlough
3.) Check which steps to take before calculating your claim
4.) Calculate how much you can claim
5.) Claim for your employees’ wages
6.) Report a payment in PAYE Real Time Information
To make a claim, you will need:
- To be registered for PAYE Online
- Your UK bank account number and sort code
- The billing address on your bank account
- Your employee PAYE scheme reference number
- Number of employees being furloughed
- Each employee’s National Insurance number
- Each employee’s payroll or employee number
- Start and end date of of the claim
- Full amounts you are claiming for
- Phone number
- Contact name
- Either: Your name, Corporation Tax Unique taxpayer reference, Self-Assessment Unique taxpayer reference or company registration number
For employees that are flexibly furloughed, you will need:
- The number of usual hours your employee would work in the claim period
- The number of hours your employee has or will work in the claim period
- A record of the number of furloughed hours your employee has been furloughed in the claim period
To claim, you will need the Government Gateway ID and password you got when you registered for PAYE Online.
All claims for periods from 1 July 2020 to 31 October 2020 must be submitted no later than 30 November 2020. Claims from 01 November 2020 must be submitted by 11.59pm 14 calendar days after the month you’re claiming for.
Knowing how to take control of your business finances to maximise profits can be difficult, especially with the current climate. Knowing the common mistakes to avoid can be difficult and can leave you feeling unsure.
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