Changes to the Coronavirus Job Retention Scheme (CJRS) from July 2021

As announced in the Budget, in July, the UK Government will only pay 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will reduce to 60% of employees’ usual wages up to a cap of £1,875.

Employers will need to pay the 10% difference in July, and 20% in August and September, so that they can continue to pay their furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.

Employers can still choose to top up their employees’ wages above the 80% level or cap for each month if they wish, at their own expense.

https://jsca.co.uk/budget-2021-7/

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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