POSTED: March 09 2021
AN UPDATE ON THE CJRS – WHAT COMES NEXT

AN UPDATE ON THE CJRS – WHAT COMES NEXT

On Wednesday 3rd March 2021, Chancellor Rishi Sunak outlined a number of economic plans in his budget statement. advo payroll summarises.

The government have created a summary page for the budget (https://www.gov.uk/government/news/budget-2021-what-you-need-to-know) you can refer to this for more information.

KEY POINTS TO NOTE FOR EMPLOYERS

The most notable for us was the Coronavirus Job Retention Scheme has been extended across the UK until the end of September, when it was originally due to end in April.  Although furloughed workers will continue to receive 80% of their salary for hours not worked up to a maximum of £2,500 per month, employer contributions will raise to 10% in July and 20% in August and September.

  • For periods ending on or before 30 April 2021, you can claim for employees who were employed on 30 October 2020, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee. You do not need to have previously claimed for an employee before the 30 October 2020 to claim for periods from 1 November 2020.
  • For periods starting on or after 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee. You do not need to have previously claimed for an employee before the 2 March 2021 to claim for periods from starting on or after 1 May 2021.
  • Please see here for more on this: https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.

Sunak confirmed that the National Living Wage is set to increase from April, seeing a rise from £8.72 currently to £8.91 an hour.  The upper age rate for 25 year olds and older will also reduce to include those aged 23 and over, so this may affect a wider number of your workforce.

Incentive payments for businesses to hire new apprentices has now increased to £3,000 for each new apprentice hired, regardless of age.

New grants linked to the Restart Scheme will be available from April to businesses, providing a one-off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England. In addition, non-essential businesses will be eligible for Restart grants of up to £6000 per premises.

A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million to help businesses of all sizes through the next stage of recovery.

A new ‘Help to Grow’ scheme which will provide around 130,000 SMEs across the UK with free MBA-style management training, technology advice and discounted software.

Full guidance on Government business support including the CJRS can be found here.

We are here to help. If you are an advo client, or want to know more about how advo payroll can support your business, and need guidance then please get in touch with the team on payroll.ops@advogroup.co.uk.