The Coronavirus Job Retention Scheme (CJRS) reference pay calculations will change from 1 July 2021, as the scheme starts to run down prior to its termination in September 2021.
From 1 July 2021 grants will reduce to 70 percent of ‘reference salary’ (capped at £2,187.50 per month), and from 1 August 2021 reduce further to 60 percent of ‘reference salary’ (capped at £1,875 per month).
In July it is then the responsibility of the employer to provide the remaining 10%, a cost of up to £312.50 per month for hours spent not working.
During this time, employers must also continue to pay the employee ER National Insurance Contributions (NICs) and Pension contributions for the hours the employee is on furlough.
As a reminder, the qualifying employees for periods starting on or after 1 May 2021, are those employees already employed on 2 March 2021 and employers do not need to have claimed previously under CJRS to be eligible to claim from July onwards.
SRC-Time are one of the South East’s leading accountancy firms in advising businesses in all aspects of their accounting and tax affairs and we are able to 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.