Changes to CJRS contributions
22 June 2021
The Coronavirus Job Retention Scheme (‘CJRS’) guidance has been updated to clarify changes from 1 July 2021.
- The guidance also confirms that claims for furlough days in June 2021 must be made by 14 July 2021.
- From 1 July 2021, employers must start contributing to furlough pay – see guidance on the changes to the level of grant here.
- This means that the government will pay 70% of wages up to a maximum cap of £2,187.50 for hours not worked by the employee. Employers must then top up employees’ wages to make sure they receive 80% of wages up to a maximum cap of £2,500 in total. The caps are proportional to the hours not worked.
- The next change will be from 1 August 2021 where Government contributions will decrease to 60% up to £1,875 and employer contributions rising to 20% up to £625.
Aspire Comment
Many employers will be disappointed that the changes will go ahead on 1 July 2021 despite the extension to the lockdown measures for another 4 weeks, especially those in sectors that are still affected by the restrictions, prohibiting them from opening to full capacity.
CJRS claims are likely to be scrutinised by HMRC as part of future PAYE investigations. Prevention is better than cure. We can review your current practices in relation to all aspects of a PAYE investigation before you get that knock at the door. 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.