Job Retention Scheme

Last updated Monday 8 March 2021 - 10:11

The Coronavirus Job Retention Scheme has been extended until 30 September 2021 and the level of grant available to employers under the scheme will stay the same until 30 June 2021.

From 1 July 2021, the level of grant will be reduced and employers will be asked to contribute towards the cost of their furloughed employees’ wages. To be eligible for the grant the employer must continue to pay their furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.

HMRC have produced a table detailing the level of government contribution available, the required employer contribution and the amount that the employee receives per month where the employee is furloughed 100% of the time.

Employers will need to:

  • Designate affected employees as ‘furloughed workers,’ and notify your employees of this change, getting their written agreement - changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
  • Submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)

The Government guidance covers the treatment of employees who do voluntary work, undertake training and who work for another employer whilst furloughed.

The links to make a claim can be found at the bottom of this page.

Before you make a claim you will need the following:

  • To be registered for PAYE Online
  • Your UK bank account number and sort code
  • Your employer PAYE scheme reference number
  • The number of employees being furloughed
  • Each employee’s National Insurance number
  • Each employee’s payroll or employee number (optional)
  • The start date and end date of the claim
  • The full amount you’re claiming for including employer National Insurance contributions and employer minimum pension contributions
  • Your phone number
  • Contact name

You also need to provide either:

  • Your name (or the employer’s name if you’re an agent)
  • Your Corporation Tax unique taxpayer reference
  • Your Self-Assessment unique taxpayer reference
  • Your company registration number

And finally, here are few useful tips to help you:

  • You can now save your progress as you go along.
  • Inactivity on the application for 15 minutes may mean that the application times out and you will have to start again.
  • You’ll have to enter all furloughed employees individually if you have less than 100 so be prepared
  • Copy or take a screenshot of the submission page and save it or email it to yourself as you won’t get a conformation email
  • Keep a copy of all records, including all your calculations
  • Wait 10 working days before calling HMRC for querying claims

Government guidance for employers can be found here:

How to calculate a claim

Step by step guide

Government guidance for employees can be found here.

For more information please contact our specialist Payroll team

Amy Haines 01284 722314
Liz Lockwood 01728 440571
Lucy Moore 01473 220054