Businesses must meet 30% of costs from July
With the economy showing signs of bouncing back, restrictions to movement and personal freedoms being lifted and a more widespread return to the office anticipated, one of the central support pillars of business support provided by the Government has been the Coronavirus Job Retention Scheme.
Furloughed employee expenses are now being shifted back to employers rather than being picked up by the Government and significant costs will be incurred by some businesses in July.
There are changes occurring in the CJRS scheme as the Government winds it down and it doesn’t look like there will be any further extensions.
What you need to be aware of if you are using the scheme is:
For June claims, which are due by Wed 14th July:
- you can claim 80% of your furloughed employees’ usual wages for the hours not worked, up to a cap of £2,500 per month.
From July the following changes take place:
UK Government will pay 70% of employees’ usual wages for hours not worked, up to a cap of £2,187.50. In August and September, this reduces to 60% of employees’ usual wages up to a cap of £1,875.
You will need to pay the difference, so that you continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 a month.
The CJRS calculator is available to help you work out how much you can claim for employees up to the end of September. To find this and everything you need to know about the CJRS, search ‘Job Retention Scheme‘ on GOV.UK.
If you have claimed too much CJRS grant and have not already repaid it, you can repay this as part of your next online claim without needing to call them.
If you made a mistake in your claim that means you received too little money, you’ll need to amend it within 28 calendar days after the month the claim relates to – unless this falls on a weekend or bank holiday, where the deadline is the next weekday. The deadline to amend claims for June is Wednesday 28 July.
The VAT deferral new payment scheme is now closed.
You may be charged a 5% penalty and/or interest if you did not pay in full, join the VAT new payment scheme online by 21 June or make an arrangement to pay by 30 June 2021.