The Coronavirus Job Retention Scheme

Key Details – November 2020

Corporate Finance & Restructuring

November 23, 2020

Stool

The Coronavirus Job Retention Scheme (the “Scheme”) is designed to provide payments to employers for the costs of furloughed employees. The Scheme has been extended until 31 March 2021.

The Scheme covers the period 1 March 2020 to 31 March 2021. The Scheme was originally due to end on 31 October 2020 and provided reducing amounts of grant under a “phase out”, together with additional flexibility in the period between 1 July and 31 October. The Scheme was effectively relaunched for the period 1 November 2020 to 31 March 2021.

This note focuses on this later period. From 1 November 2020 the Scheme will reimburse up to 80% of an employee’s usual wages for hours not worked, subject to a maximum of £2,500 per month. The Scheme will be reviewed again in January 2021 and may be subject to change. To be included within the Scheme an employee must have been employed (and paid) by 30 October 2020 at the latest.

In this article we look at the key details on how the Scheme can help your organisation in light of the ongoing COVID-19 uncertainty.

The Scheme is open to any UK employer with a PAYE scheme and UK bank account. To be eligible, employees must have been paid via PAYE as at 30 October 2020. Any employees who have been made redundant on or after 23 September 2020 can be re-hired and put on furlough immediately. Any employees who have not already been paid via PAYE by 30 October 2020 are not covered.


More Info

Share this page