Furlough scheme set to end on 30th of September 2021
Sep, 2021
The government have stated that the Coronavirus Job Retention Scheme (CJRS) will end on 30th September 2021.
According to the Office for Budget Responsibility, from March 2020 to the end of September 2021, the cost of furlough is estimated to be around £66bn, the scheme has positively helped to save millions of jobs and it has been considered a great success against unemployment rates raising.
When the furlough scheme was introduced, the government initially contributed 80% of furloughed employee’s current salary, up to £2,500 for staff who couldn’t work due to the pandemic or employers who could no longer afford to pay them. The balance has shifted from the government to the employer as the contribution amount has increased to stimulate the return to work.
Current furlough contribution rates
- For claims in August and September 2021, the government will contribute 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough.
- Employers are required to contribute 20%, up to £625, along with National Insurance and pension contributions. In total furloughed employees will still receive 80% of their regular salary, up to £2,500.
Software customers can find information on how to process payments for a furloughed employee on our knowledge base. Also, you can find information detailing how to submit a Coronavirus Job Retention Scheme claim by clicking here.
Furlough deadlines
- Claims for furlough days in August 2021 must be made by 14th September 2021.
- Claims for September must be submitted by 14th October 2021 and any amendments must be made by 28th October 2021.
To check if you can claim employees’ wages through the Coronavirus Job Retention Scheme, visit the GOV.UK website here.
For further information please visit HMRC guidance and support page.
References:
https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme