From HMRC -
Latest changes that may impact you
The Coronavirus Job Retention Scheme (CJRS), which was due to end on 31 October, will now be extended, with the UK government paying 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500 for periods from 1 November.
You will need to pay all employer National Insurance Contributions (NICs) and pension contributions. You can choose to top up your furloughed employees’ wages beyond the 80% paid by the UK government for hours not worked, but you are not required to do so.
There will be no gap in support between the previously announced end date of CJRS and this extension.
For more information, go to GOV.UK and search 'furlough scheme extended'.
How will it work?
You will have flexibility to ask your employees to work on a part-time basis and furlough them for the rest of their usual working hours or furlough them full-time. You will have to cover their wages for any hours they work as well as all employer National Insurance and employer pension contributions.
You will be able to claim either shortly before, during or after running your payroll. There will be a short period initially when the online claims service will be closed while we update the system, and you will be able to claim in arrears for that period.
Further details will be provided in the next few days. Please do not call us for more information in the meantime – we will let you know via email as soon as this is available.
How to check if your employees are eligible
You can claim for employees who were on your PAYE payroll on 30 October 2020. You must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.
If employees were on your payroll on 23 September 2020 (i.e. notified to HMRC on an RTI submission on or before 23 September) and were made redundant or stopped working for you afterwards, they can also qualify for the scheme if you re-employ them.
Neither you nor your employee needs to have previously used the CJRS. Further details on eligibility will be provided in the next few days.
What you need to do now
- Check if your employees are eligible for the scheme, based on the information above.
- Agree working hours with your employees, so they know if they are furloughed fully or part-time during November.
- Keep the records that support the amount of CJRS grant you claim, in case HMRC need to check it. You can view, print or download copies of your previously submitted claims by logging onto your CJRS service on GOV.UK.
Job Support Scheme
The new Job Support Scheme, which was due to start on Sunday 1 November, has now been postponed.
Guidance and live webinars offering you more support on changes to CJRS, and how they impact you, are available to book online – go to GOV.UK and search 'help and support if your business is affected by coronavirus'.
Our phone lines and webchat remain very busy, so the quickest way to find the support you need is on GOV.UK. This will leave our phone lines and webchat service open for those who need them most.
Protect yourself from scams??
Stay vigilant about scams, which may mimic government messages as a way of appearing authentic. Search 'scams' on GOV.UK for information on how to recognise genuine HMRC contact. You can also forward suspicious emails claiming to be from HMRC to email@example.com and texts to 60599.
- R3 Standard Form COVID 19 CVA Proposal
- Bounce Back Loans: FAQs for the Insolvency Profession
- Creditor Guides
- Dealing with corporate financial distress
- Dealing with money worries – a guide to your options
- Insolvency Service
- Standard Conditions - IVA
- Standard IVA Protocol
- Further guidance notes
R3 members can provide advice on a range of business and personal finance issues. To find an R3 member who can help you, click below.