The Coronavirus Job Retention Scheme (CJRS) had been due to finish at the end of April 2021. Today it’s been announced that it will be extended again until the end of September.  You will however start to bear more of the cost of the scheme as it’s wound down. What’s the full story?

Currently under the CJRS, you can claim for 80% of a furloughed employee’s salary up to £2,500 per month, with you only needing to pay employers’ N and pension contributions in relation to these grants. However, you will need to start contributing more from July onwards as follows:

•  From July, you will also have to contribute 10% of furlough pay.  This means that you will only be able to claim for 70% of furlough pay and you must make up the difference so that your furloughed employees continue to receive the 80% minimum.

•  From August, this contribution increases to 20% of furlough pay.  This means that you will only be able to claim for 60% of furlough pay and you must make up the difference so that your furloughed employees continue to receive the 80% minimum.

More information can be found here