Relief felt by employers and employee alike when the Chancellor announced the extension of the CJRS on 31st October may have been short lived for any who went on to read the Government guidance updated a day later.
The Chancellor's press release notes that all employees on PAYE as of 23:59 30th October 2020 are eligible under the extended scheme. This has not been reflected in the Government guidance of 1st November 2020; this still states only employees furloughed prior to 30th June are eligible.
It is our understanding that eligibility criteria in the press release is correct and so CJRS version 2.0 is available to a wider group than the original version. We await clarification in the Government's guidance. Whilst we are getting used to this white knuckle ride of inconsistencies and promised guidance, a respite would be welcome! Please do check on our regular ebriefs on our website for further guidance https://www.anthonycollins.com/newsroom/ebriefings/
Who is eligible? Employers All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS. The government expects that publicly funded organisations will not use the scheme, as has already been the case for CJRS, but partially publicly funded organisations may be eligible where their private revenues have been disrupted. All other eligibility requirements apply to these employers. Employees To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020. *As under the current CJRS rules: Employees can be on any type of contract. Employers will be able to agree any working arrangements with employees. Employers can claim the grant for the hours their employees are not working, calculated by reference to their usual hours worked in a claim period. Such calculations will broadly follow the same methodology as currently under the CJRS. When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days. Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period. For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts.