Treasury publishes further direction on extended furlough scheme

Following our blog on 5 November 2020, the Government has now issued a new treasury direction that extends and modifies the Coronavirus Job Retention Scheme (CJRS) to permit the furloughing and flexible furloughing of employees for the period from 1 November 2020 to 31 March 2021.

 

Key changes to the scheme include the following:

– The CJRS Bonus of £1,000 per employee has been withdrawn, which was originally payable to employers if employees were not under redundancy notice on 31 January 2021

– 80% of wages will be met by the Government under the scheme up to 31 January 2021 (a further treasury announcement will be published confirming the arrangements for February and March 2021)

– A furlough agreement must be in place before the start of the relevant claim period (this can be an update to an existing one, therefore, extensions should be agreed in advance)

– An employee who hasn’t previously been on furlough can be furloughed as long as they were on a submitted payroll before midnight on 30 October 2020

– The following deadlines apply:

– claims in respect of November 2020 must be submitted by 14 December 2020 and must be amended by 29 December 2020;

– claims in respect of December 2020 must be submitted by 14 January 2021 and must be amended by 28 January 2021; and

– claims in respect of January 2021 must be submitted by 15 February 2021 and must be amended by 1 March 2021

– You cannot make a claim for notice periods being served between 1 December 2020 and 31 January 2021 (this is applicable to both contractual and statutory notice)

– HMRC will publish the names of companies who have made claims under the scheme for the month of December 2020 onwards

 

Here to help

For advice tailored to your situation, or support with submitting your claims, please speak to your usual PM+M representative, or get in touch on enquiries@pmm.co.uk and we’ll direct you to the right person.

 

 

 

This information is correct as of 18 November 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.

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