CJRS – News Flash

CJRS – News Flash

Are you prepared for the end of the CJRS?

As the CJRS closes on 30‌‌ ‌September, you will be thinking about the next steps for your employees and your business.

In order to help you prepare we thought we would share HMRC’s FAQ publication with some useful advice and guidance.

If you have any questions or require further support, contact one of our Payroll team who will be happy to support you.

What should you do when the scheme closes?

You will need to:

  • Bring your employees back to work on your agreed terms and conditions
  • Agree on any changes to your terms and conditions with them
  • Consider ending their employment.

When making decisions about how and when to end furlough arrangements, equality and discrimination laws will apply in the usual way. For more information search ‘Job Retention Scheme’ on GOV‌‌.UK.

Can you claim CJRS for employees on notice periods?

Employers cannot claim CJRS grants for any days an employee is serving a contractual or statutory notice period, including notice of retirement, resignation or redundancy.

What support is available for my employees if I’m unable to bring them back to work?

There’s UK Government support available for your employees through the JobHelp website, offering a range of support, training and advice, to help people find their next opportunity. This includes the Kickstart scheme and other Plan for Jobs support measures, along with advice on learning new skills and finding who’s recruiting. Search GOV‌.UK for ‘Plan for Jobs programmes’ for more information.

What support is available to help my business grow after the CJRS has closed?

If you are looking to grow your business, the UK Government Help to Grow scheme offers management and digital programmes, to help you learn new skills and reach more customers. To register your interest, search GOV‌‌.UK for ‘Help to Grow’.

If employers are considering taking on new employees, there’s a range of UK Government support available to help them, including placements, apprenticeships and training opportunities. Search ‘Plan for Jobs programmes for employers’ on GOV‌‌.UK to find out how your client’s business could benefit.

What if I claimed too much in error?

If you have claimed too much CJRS grant and you have not already repaid the overclaimed amount, you can repay as part of your next online claim. If you claimed too much but do not plan to submit further claims, you can make a repayment online through HMRCs card payment service.

You must tell HMRC and repay the money by the latest of whichever date below applies:

  • 90 days from receiving the CJRS money you are not entitled to
  • 90 days from the point circumstances changed so that you are no longer entitled to keep the CJRS grant.

If you don’t do this, you may have to pay interest and a penalty as well as repaying the excess CJRS grant.

What if I haven’t claimed enough?

If you made a mistake in your claim that means you received too little money, you’ll need to amend your claim within 28‌‌ ‌calendar days after the month the claim relates to – unless this falls on a weekend or bank holiday, where the deadline is the next weekday.

 

 

Technical Updates – HMRC employer bulletin

Technical Updates – HMRC employer bulletin

CJRS Update 

For periods in July 2021, Coronavirus 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 2021, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.You need to continue to pay your 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. This means, for periods between July and September 2021, you will need to fund the difference between this and the Coronavirus Job Retention Scheme grants yourself.’
 

NI Number Allocation

The digital application service for NI numbers is now open and can be found here. HMRC have advised that Demand is currently high for the service and applications can take up to 16 weeks to be processed.’
 

NI holiday for employers of veterans 

From April 2021 Employers can claim relief on Class 1 NI contributions if they employ a veteran during the qualifying period. The qualifying period starts on the first day of the veteran’s first civilian employment since leaving the regular armed forces and ends 12 months later. 

Please contact the PS4 team if you have any questions.

Important changes to NLW and NMW

Important changes to NLW and NMW

Important changes to NLW and NMW

National living wage increases have become a metronomic feature of the financial year, and while this year’s increase is nothing untypical, both Furlough arrangements and the changes in age brackets mean that the rate increase is more complex than usual. There are three main highlights to familiarise yourself with before this April’s NLW and NMW changes; the increase amount, the age bracket the increase relates to and the Furlough scheme.

Firstly, the rate change itself. On the 1st of April 2021, NLW is due to increase from £8.72 per hour by 2.2%, to £8.91. In addition, NMW is set to increase by 2% for workers ages 21-22 to £8.36, 1.7% for workers aged 18-20 to £6.56, and 1.5% for workers aged 16-17 to £4.62.

 

Importantly however, the NLW age bracket for workers will drop from 25 years old to 23 years. This is particularly impactful for an industry like hospitality where there is a high proportion of younger employees. In fact, by dropping the age from 25 to 23 it will impact the pay of roughly 10% of hospitality employees.

Whilst the increase will be welcomed by employees across the UK, they may be disappointed to learn that this will have no impact on the amount they receive whilst on Furlough. Government guidance has stated that while Furlough will continue into the summer, employees on Furlough are not subject to the increase and their furlough pay will remain based on reference periods before to the increase. However, employers will have to pay NLW / NMW for holiday pay or while an employee is on training.

This will give some businesses a conundrum on how to maximise the benefit of the Furlough and Flexible Furlough schemes when considering who to bring back to work and who to keep on the scheme. By leaving employees over the age of 25 on the scheme while bringing back younger employees, some of the increase will be held for the short term, before reaching the point of relinquishing Furlough. It is important to acknowledge that any factors concerning employees should not contravene age discrimination legislation.