CJRS extended as Government detail recovery roadmap

On 12 May, the Chancellor confirmed that the Coronavirus Job Retention Scheme (CJRS) will remain open until the end of October.

The announcement follows Boris Johnson’s speech outlining the Government’s response to the next phase of the pandemic.

In essence, furloughed workers will continue to receive 80% of their salary, up to £2,500, beyond the end of June.

Changes to the lockdown restrictions are so far very limited. Subsequently, businesses can expect any return to ‘normal’ to be a gradual one.

Rishi Sunak confirmed that the scheme would run as it is now until the end of July. Then, from August, furloughed workers will be able to return to work part-time, whilst still receiving the 80% furlough payment.

However, employers will be expected to subsidise this cost – though, exactly how much is yet to be confirmed.

It is hoped that, by building flexibility into the scheme and extending the provisions until October, businesses and employment will benefit from a welcome boost.

For those business owners who are beginning to look towards rebuilding their business, and towards reintroducing employees to the workplace, the extension will likely be a huge weight off their shoulders.

The Government will publish details of the new arrangements before the end of May. Read our full article on the latest announcement here.

Tax arrears see some CJRS claims incorrectly refused

HMRC has apologised for the distress caused by some CJRS claims having been incorrectly rejected.

Employers with tax arrears should not have been refused support; HMRC has updated its guidance to ensure that this does not continue. Those previously refused are being encouraged to reapply.

How can George Hay help?

We will continue to monitor any further developments in relation to the CJRS, and report on these as appropriate.

Information correct at time of writing (12/05/2020). Please keep an eye on our dedicated Coronavirus page, for the very latest news as we endeavour to cover the key issues affecting you and your business at this time. More information and advice is available on the Gov.uk website.

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