Employers considering the CJRS due to new lockdowns, but who haven’t participated for some time, must be familiar with the current rules.
The introduction of further national lockdowns, and extension of the Coronavirus Job Retention Scheme (CJRS) up to at least the end of April, has led many employers to review decisions about furloughing workers and claiming support for wage costs through the scheme. However, employers who have not used the scheme recently – perhaps due to improved prospects for their businesses over the summer – should be aware that the rules have evolved over recent months and differ significantly to those that were in force prior to 31 October 2020. This article summarises some key considerations for employers who are thinking about re-entering the CJRS.
What are the key enhancements from 1 November 2020?
Employers who have not participated in the CJRS recently should be aware that the extension of the CJRS that was announced on 31 October 2020 was not merely a continuation of the previous scheme.
In summary, key enhancements to the CJRS are that:
Additionally, HMRC have clarified that employees caring for children at home as a result of school or childcare facilities closing may be furloughed.
What should employers rejoining the CJRS consider?
In addition to the increased financial support and relaxations summarised above, employers who re-enter the CJRS after 1 November 2020 should bear in mind the following developments:
Finally, for claim periods that begin on or after 1 December 2020, HMRC will publish certain details of participating employers and the levels of claim made.
For more commentary on the CJRS, see our employer Q&A.
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