The fourth version of the CJRS (Coronavirus Job Retention Scheme), otherwise known as furlough grants, commenced on 1st May 2021 and will end on 30th September 2021. Allows employees who are affected by COVID-19 to be supported financially by being paid at least 80% of their usual pay. small business accounting services
How much is my pay on the furlough scheme?
Via HMRC, the UK government will continue to provide support of up to 80% of employees’ usual pay in May and June.
This will be reduced to 70% for July and then 60% for August and September with employers required to make up for the difference.
An employer is also required to pay national insurance contributions and pension contributions on the full amount paid to the employee. This is limited to £2,500 a month for hours not worked.
Am I eligible for the furlough scheme extension?
To be included in a CJRS or furlough scheme for periods after 1st May 2021, an employee must have been on the payroll and subject to an RTI (real-time information) submission between 20th March 2020 and 2nd March 2021. small business accounting services
Claim calculation is still very complex as you need great care when computing the employee’s usual hours and usually pay, particularly where the hours and pay varies.
HMRC may impose penalties on employers that have over-claimed, even for careless errors.
Need help with calculating your furlough?
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