HMRC Job Retention Scheme

What are the options?

A Government grant of 80% towards employee salaries who would otherwise have been laid off as a result of the crisis.

  • All UK businesses are eligible.
  • Capped at £2,500 per month per employee.
  • Workers must be ‘furloughed’, i.e. they must stop working but not be made redundant.
  • Back dated to 1 March 2020.
  • Extended until 31 March 2021.

HMRC set up a new system to process requests and payments.

HMRC are also allowing business with fewer than 250 employees to reclaim up to 2 weeks Statutory Sick Pay for staff who have been off work due to Coronavirus.

Further information can be found here

The JRS was due to come to an end on 31 October 2020 to be replaced by the Job Support Scheme. However, due to the Government’s announcement on 31 October 2020 that there was to be a second, 4-week, national lockdown from 5 November 2020, the JRS has been extended through to 31 March 2021.

The JRS will return to the August 2020 level of support where employees will receive 80% of hours unworked (up to a cap of £2,500) by the UK Govt. and employers will only be required to contribute the employer National Insurance Contributions (NICs) and pension contributions for the hours the employee does not work until January 2021.

The Job Retention Bonus, £1,000 per furloughed employee still employed in January 2021, will not be paid in February 2021 as previously advised by the Government due to the extension of the JRS. The Government advice states that a retention bonus will be deployed at the appropriate time. Any such bonus will likely be under similar terms that a furloughed employee will still need to be employed by the business c. 3 months after the JRS ends.