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Furlough scheme reinstated for national lockdown

The Coronavirus Job Retention scheme (CJRS) will now continue until 30 November 2020 with grants covering 80% of wages, while implementation of the Job Support Scheme(JSS)  has been delayed. The JSS will not now take effect until the CJRS ends on 30 November.

The new national restrictions will apply from 5 November to 2 December 2020, but the financial support for employers applies from 1 November as the furlough scheme operates on full calendar months.


What support is given?

The furlough scheme has been reinstated with the similar conditions as applied in August 2020.

The CJRS grant will pay for 80% of the employee’s current wages for time not worked, up to £2,500 per month. The employer must pay for all of the employer’s NIC and employer’s minimum workplace pension contributions on those wages.

The employer can top-up the employee’s furlough pay at their own expense, if they wish to.


Which employees qualify?

Employees who were on the employer’s payroll at 30 October 2020 will qualify to be included in CJRS claim for November. The employee must have been paid by the employer, and that pay must have been reported on a RTI return before midnight on 30 October.

Employees on any type of contract can qualify, including zero hours, although more detail on whether contractors or directors are included is expected in the next few days.


Flexi furlough

Flexible furlough will be permitted alongside full-time furlough, so staff may be brought back part-time to say, set up the premises for the lifting of national restrictions, or to prepare for Brexit.

The same rules for flexible furlough will continue to apply as they have done since 1 July, so the employee may be furloughed for a few days or hours per week. There appears to be no minimum time set for furloughed hours or working hours.

However, each furlough claim must be for a period of at least seven consecutive calendar days.


Which employers qualify?

All employers with a UK bank account can claim support under the extended CJRS.

Charities and not-for-profit organisations can also claim in respect of their employees. However, public sector bodies and publicly funded organisations are not expected to use the scheme.


How to claim?

The claim process will be very similar to that which has applied so far under CJRS. The employer will have to report the hours the employee has not worked in a claim period, and the usual hours.


Further Guidance

Further details and legislation are expected to be published shortly.



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