Updates to CJRS from 1 May 2021

From 1 May 2021 the following changes to the Coronavirus Job Retention Scheme will apply;

• Businesses can claim for employees who were employed on 2 March 2021, as long as they have made a PAYE RTI submission between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee.
• Businesses submitting a claim on or after 1 May 2021 do not need to have previously claimed for an employee before the 2 March 2021.
• Businesses will no longer be able to furlough staff that were previously made redundant
• For businesses which wish to furlough employees after a TUPE transfer, this will be possible if they were included on a PAYE RTI submission on or before 2 March 2021.
• Businesses will still be able to claim for 80% of an employee’s wages for hours not worked until 1 July 2021 at which point the percentage that can be claimed will reduce.
• From the 6 May 2021 Furloughed employees can see if they were included in a grant for February 2021 in their personal tax account.

Full guidance can be found here.

Aspire Comment:

These changes widen the scope of the scheme by allowing organisations to furlough those who began working between 31 October 2020 and 2 March 2021 and will be welcomed by many businesses who were not previously able to use the furlough scheme for those recruited in this period. The changes will assist in reducing the financial burden whilst businesses cautiously return to normal working practices.

For employment guidance, please get in touch with one of our advisors on 0121 445 6178 or email enquire@aspirepartnership.co.uk for a chat to see how we can support you and your business.