Coronavirus Job Retention Scheme Webinar Update

Posted 19 Jun, 2020

NITA hosted its recent Tourism Recovery webinar in partnership with Mills Selig, a leading corporate and commercial law firm, focusing on the upcoming changes to the Coronavirus Job Retention Scheme (CJRS). You can listen again to the webinar here (password: 3K.vv&0=) or download the presentation below. We have also included the links to HMRC advice on the scheme.

Kiera Lee, Director, Mills Selig, with 20 years’ experience in Employment Law, took participants through the flexible but complex scheme, covering topics including :

- Overview of changes

- Cost of furlough

- New furlough agreements

- Steps to take before you claim

- Claim periods

- Usual hours

- Working out how much you can claim

Key points from the webinar included:

- New entrants
The scheme will close to new entrants from 30th June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30th June, the only exception to this is for those returning from maternity or paternity leave.

- No minimum furlough period
Previously this had been three weeks, however, the deadline for putting new participants on the furlough scheme was 10th June.

- New furlough agreement is needed
This will either take the form of a continuance letter or outlining the new expectations for flexible furlough for example, working hours, confirmation of payment, review period and if the company will top up the salary etc. Companies now need to keep a record of this agreement, calculations for payment and for those who are using the flexible furlough evidence of hours worked)

- The claim process is changing
Before you claim you must decide on length of claim period, calculate usual wage and calculate ‘usual hours’ and furloughed hours.

- Claim Period
Going forward, every month is a new claim period. Claim periods from July must last at least seven days, and must be within the calendar month (you can claim single days at start and end of moth).

NB any claims for before 30th June must be submitted before 31st July.

- Calculating Usual Wage and Furloughed Hours
Claims will be calculated with reference to ‘usual hours’ if employees are availing of the flexible furloughing option (and are not fully furloughed). The calculation depends on whether its fixed or variable hours. Full details are in the presentation below but employers are obliged to keep these calculations, alongside hours worked. Key points to note when calculating the usual hours, you must take into account calendar days, not working days, and the final figure should be rounded up

- Employer Contributions
Employees will continue to receive 80% of salary up to £2,500, however there is a new cap on claims for September and October and employers will pay NIC and pension contributions from August

Due to the complexity of the scheme, NITA is planning to host a Q&A session to support tourism businesses in July. In the meantime, you can listen again to the webinar here (password: 3K.vv&0=) or download the presentation below.

Key HMRC resources

Check if you can claim
Check which employees you can put on furlough guidance
Steps to take before calculating your claim using the CJRS
Calculate how much you should claim-
Worked Examples

CJRS Presentation from Mills Selig