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.
  • 3-month initial duration but to be reviewed on an ongoing basis.
  • Back dated to 1 March.

HMRC are in the process of setting 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 December 2020. No definitive date has been given to when the JRS will cease however, this is likely owing to any potential extension of the national lockdown.

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.

More information on the Job Support Scheme that is due to replace the JRS can be found here.