CJRS changes from 1 August

Victoria McIntosh
Payroll, Tax, COVID-19

Since the Coronavirus Job Retention Scheme (CJRS) was launched in March, it is estimated that more than 1.2million employers have claimed grants for approximately 9.5 million employees.

The scheme has seen employee’s wages, together with the associated employer NIC contributions and auto-enrolment pension contributions being subsidised by the government up to a prescribed limit.

There are various changes to the scheme from 1 August 2020 – employers will need to be aware of these to ensure that their claims are accurate.

From 1 August, the government will continue to pay 80% of wages up to the £2,500 cap for the hours that an employee is furloughed. However, the employer will be responsible for the Employer’s NICS and pension contributions.

There are further changes set for September when the government will subsidise 70% of wages – up to a maximum cap of £2,187.50 for the hours that the employee is on furlough. Employers will be required to top up their employees pay to 80% of wages, up to £2,500. Employers will also be responsible for the Employers NIC and pension contributions.

For October, the grant is set to drop to 60% of wages, up to a cap of £1,875. Again, the employer is responsible for topping up wages to 80% and the associated costs.

The Coronavirus Job Retention Scheme will close on 31 October.

If you have any questions

Wide-ranging tax planning and compliance services for individuals seeking advice and guidance from our team of experienced and highly qualified professionals.

Friendly and coherent advice and guidance on accounting and tax matters for small business owners including those starting out for the first time.

Established businesses requiring accounting and tax compliance services, forward thinking tax planning advice and the support to help your business succeed.

Our full range of enhanced corporate services aimed at large companies and those requiring audit, assurance, corporate tax advisory and diverse tax planning services.



This is a test definition