Job Retention Scheme (CJRS) employer grants

simon

Simon Misiewicz

22nd October 2020

Coronavirus Job Retention Scheme (CRJS) Grants

You may be interested to know how Coronavirus is also known as COVID19 affects other aspects of the economy be it self employment, property or other aspects of employment.

The Furlough scheme was once more extended as a direct result of the 31st October 2020 meetings that took place between Boris Johnson and government health officials.

Eligibility to make a claim against CJRS

Employers can make a claim against the job retention scheme if they:

– Furlough an employee (send the employee home and not to work

– The employee is not involved in the business from the point that they are sent home

– The employee has not been made redundant

– The following types of employees may benefit from this grant funding:

– full-time employees
– part-time employees
– employees on agency contracts
– employees on flexible or zero-hour contracts

How much money can employers make against CJRS grant

March to July 2020 –

lower of:

– £2,500 per month per employee

– 80% of their gross monthly wage (commissions and bonuses must be ignored for this calculation)

– Plus the 3% employers pension contributions

– Plus the employer’s national insurance contributions

 

August 2020 – lower of:

– £2,500 per month per employee

– 80% of their gross monthly wage (commissions and bonuses must be ignored for this calculation)

 

September 2020 – lower of:

– £2,187.50 per month per employee

– 70% of their gross monthly wage (commissions and bonuses must be ignored for this calculation)

 

October 2020 – lower of:

– £1,875 per month per employee

– 60% of their gross monthly wage (commissions and bonuses must be ignored for this calculation)

 

Any claims made against the CJRS is an income to the organisation and income tax/corporation tax will be charged against monies received as appropriate.

The employee in which claims are made against must have been employed on or before 28th February 2020. To be eligible for the subsidy, when on furlough, an employee can not undertake work for or on behalf of the organisation. This includes providing services or generating revenue. While on furlough, the employee’s wage will be subject to the usual income tax and other deductions.

Furlough of employees that are paid a variable amount each week/month

Please note that you cannot claim a bonus or commissions. The amount paid through Furlough is based on gross salaries. An average will need to be determined if an employee is paid with a variable amount.

How to make a furlough claim

It is envisioned that the portal and the grant funding will be up and running by the end of April 2020. We suspect this means that payments will be made by HMRC in May 2020.

To claim, you will need:

– your ePAYE reference number
– the number of employees being furloughed
– the claim period (start and end date)
– amount claimed (per the minimum length of furloughing of 3 weeks)
– bank account number and sort code
– your contact name
– phone number

Click the link for you can access the job retention scheme and make a claim.

Enquire about our ongoing services

Book a call to discuss our property accountancy services

Get in touch

Book a paid for tax consultation

Use the code “Art25” to get 25% discount

Book now
Need advice?
Contact us now

Book a call to see how we can help you.

Consultation options.

We offer the two following options for initial consultations.

CALL OPTION ONE

Discuss our monthly retained accountancy services

This is a call to discuss our monthly retained accountancy services. This is not a tax call

  • Discuss our monthly retained accountancy services

  • Talk to use about your situation

  • Tell us what tax pains you have

  • We will look into your case and identify the right service for you

Discuss our services

CALL OPTION TWO

Pro active tax advice

(Free for clients)

Need tax advice right now? Let us identify the tax solution

  • Upload your questions in advance

  • All of our Tax Advisors collectively discuss your questions in the morning

  • One of our qualified tax advisors will provide the very best solution to you

  • We follow up with an email and a recording of the meeting

  • You and the tax advisor will clear up any remaining questions in an email exchange

Tax call from £699.95

Booking your appointment.