The deadline for claiming your May CJRS grant is fast approaching. It is important not to miss this.
In April 2021 the government announced that the Coronavirus Job Retention Scheme (the “CJRS” or “Furlough Scheme”) will remain in place until 30 September 2021. However, the amount of government contribution towards furloughed employee’s wages will be reduced in the last few months of the scheme, and employers will have to increase their contribution to make up the difference.
Until 30 June 2021 the level of government grant available to employers under the scheme will remain at the pre-existing level. That is, a contribution of up to 80% of furloughed employees’ wages, up to a cap of £2,500 per month, for the time they spend on furlough. Employers can continue to choose to top up furloughed employees’ wages above the 80% total and £2,500 cap for the hours not worked, at their own expense.
From 1 July 2021 the level of government grant will begin to taper down, and employers will be required to contribute an increasing percentage of the cost of their furloughed employees’ wages. To continue to be eligible for the grant, employers must continue to pay their furloughed employees at least 80% of their wages, up to a cap of £2,500 per month. The government contribution to furlough pay will reduce as follows:
From 1 July 2021, to 70% (up to a cap of £2,187.50) per month, with employers having to contribute the remaining 10% (up to £312.50) per month.
From 1 August 2021 (until the end of the scheme on 30 September 2021), to 60% (up to a cap of £1,875) per month, with employers having to contribute the remaining 20% (up to a cap of £625) per month.
Employers will remain liable for payment of National Insurance contributions and pension costs incurred on the full value furlough pay.
What you need to do
You’ll need the Government Gateway user ID and password you got when you registered for PAYE online.
You can claim before, during or after you process your payroll as long as your claim is submitted by the relevant claim deadline. You cannot submit your claim more than 14 days before your claim period end date.
When making your claim, you:
- do not have to wait until the end date of the claim period for a previous claim before making your next claim
- can make your claim more than 14 days in advance of the pay date (for example, if you pay your employee in arrears)
If you do not finish your claim in one session, you can save a draft. You must complete your claim within 7 days of starting it.
Claims must be submitted by 11.59pm 14 calendar days after the month you’re claiming for. If this time falls on the weekend or a bank holiday then claims should be submitted on the next working day.
Upcoming claim dates
May 2021 14 June 2021
June 2021 14 July 2021
July 2021 16 August 2021
August 2021 14 September 2021
September 2021 14 October 2021
SRC-Time are one of the South East’s leading accountancy firms in advising on all aspects of business, taxation and corporate finance and we can assist in any issue raised above.
Our expert team is available to provide you with advice and can be contacted on 01273 326 556 or you can drop us an email at firstname.lastname@example.org or speak with an account manager to get any process started.