Job retention scheme changes from 1 September 2020

Aug 31, 2020

From tomorrow 1 September 2020, the CJRS scheme changes again. A reminder of the key changes is set out.

  • From 1‌‌‌ ‌September, the CJRS will pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.
  • Employers will still need to pay furloughed employees 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. Employers will need to fund the difference between this and the CJRS grant themselves.
  • The caps are proportional to the hours not worked. For example, if an employee is furloughed for half their usual hours in September, employers are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
  • Employers will continue to have to pay furloughed employees’ National Insurance (NI) and pension contributions from their own funds.

HMRC has also sent the below message

“It’s important that employers provide all the data we need to process their claim. Payment of a grant may be at risk or delayed if a claim is submitted that’s incomplete or incorrect, so we want to help employers get this right. We will get in touch with employers if we see any employee data missing from previous claims.

From 25 August, files uploaded for 100 or more furloughed employees may now be automatically rejected if an incorrect format is used. If an employers’ file is rejected, they will receive a message to say it has not been accepted and their claim will not continue.

This could be due to:

  • an incorrect file type
  • too many columns or sheets
  • too few columns.

If employers are claiming for 100 or more employees, they can download and use our template as this will help them make sure their data is right.

Employers can find everything they’ll need to help make a claim on GOV.UK, including a useful calculator and guidance on the data they need to provide and the format they need to use to ensure their claim is accepted.”