CJRS changes from 1 July 2021

With effect from 1 July 2021 the Coronavirus Job Retention Scheme (CJRS) is changing. The Government will pay 70% of wages (previously 80%) up to a maximum cap of £2187.50 per employee per month for the hours the employee is on furlough. 

It will be necessary for employers to top up employees’ furlough pay to ensure that they receive 80% of wages up to a maximum of £2,500 per employee per month (these caps are proportional to the hours not worked).

There are further changes to CJRS taking place from 1 August 2021 when the amount of the grant that the Government will pay reduces to 60% for August and September (up to a cap of £1,875 per employee per month).  Employers will be required to top up the payment up by 20% for August and September to ensure that furloughed employees receive at least 80% of wages (subject to a cap of £2,500).

For details on how the scheme is changing go to the policy paper at: www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme

CJRS template for less than 100 employees

HMRC has now issued a template for employers who are claiming for between 16 to 99 employees on furlough, agents particularly welcomed the new template.  The new template was updated on 24 June 2021 for use for claims from 1 July 2021. 

The new template is in addition to the existing template for 100 or more employees which can be used for claims from 1 July 2021.

The templates can be downloaded here:

16-99 employees

100 or more employees

CJRS claims deadline

As a reminder, the deadline for claiming CJRS grants for the month of June is Wednesday 14 July 2021.

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