Furlough Scheme Update

I am sure by now you have all heard of the Coronavirus Job Retention Scheme (CJRS), also known as the Furlough Scheme. A series of updates on the said scheme has been published by the HM Revenue & Customs (HMRC) since early 2020. 

On the previous update, the furlough scheme was supposed to close at the end of April, but will now run until the end of September 2021. 

Until the end of June 2021, the UK Government will pay 80% of employees’ regular wages for the hours not worked, up to a cap of £2,500 per month. 

From July 2021 onwards, the government’s contribution will reduce and employer’s contribution will gradually increase.  

Employer’s Contribution  

In July 2021, employers will contribute 10% towards the employee’s furlough pay, with the government putting in 70%.   

In August and September 2021, employers will contribute 20% towards furlough pay, with the government putting in 60%. Employee gets 80% of regular salary until the end of the scheme.  

Deadlines For Claims 

There are monthly deadlines for claims. They must be submitted within 14 calendar days of the month they relate to, unless this falls on a weekend and then it is the next working day. You can claim before, during or after you process your payroll as long as your claim is submitted by the deadline. 

Here’s a quick rundown of the important dates: 

14 May 2021 Final date to submit claims for April 2021 by 11:59pm 
14 June 2021 Final date to submit claims for May 2021 by 11:59pm 
1 July 2021 The government’s contribution will reduce to cover 70% of employees’ regular salary 
14 July 2021 Final date to submit claims for June 2021 by 11:59pm 
1 August 2021 The government’s contribution will reduce to cover 60% of employees’ regular salary 
16 August 2021 Final date to submit claims for July 2021 by 11:59pm 
14 September 2021Final date to submit claims for August 2021 by 11:59pm
30 September 2021 Scheme closes 
14 October 2021 Final date to submit claims for September 2021 by 11:59pm  

While there is no guarantee that there will not be a further extension, employers should plan for the eventuality that the scheme will end on September.