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Budget 2021 - CJRS extension to September 2021

The furlough scheme was initially supposed to cover just March to May 2020. After 5 extensions (by our count) during 2020 it was announced at the Budget that the scheme would continue to run until 30 September 2020.

The basics of the scheme are well-known by now and we have covered them along with various changes in previous updates on these pages. This latest update will just highlight the key changes and is not intended as a guide to the whole scheme (that would run to several pages, as HMRC's official guidance now does).

The key points are as follows:

  • For May and June 2021, support will be at the same level as at present, which is 80% of an employee's qualifying wages up to a cap of £2,500 per month
  • For July the support will be cut to 70% with a cap of £2,187.50 - the employer must "top up" the pay to the previous 80% level
  • For August and September the grant support will be 60% with a cap of £1,875 and the employer's top up will rise from 10% to 20%
  • Qualifying employees from 1 May 2021 onwards will include employees who were on a pay run up to 2 March 2021 (the previous cut-off was 30 October 2020)
  • Disclosure of those employers claiming on the scheme will continue, grouped by monetary bands each month
  • Claim deadlines will be the 14th to 16th of the following month (late claims can only be made in exceptional circumstances)
  • Underclaims can be amended up to 2 weeks after the original claim deadline
  • Overclaims can be amended on the next claim (if there is no next claim or the overclaim exceeds the next claim then the employer has to obtain a reference number from HMRC and pay the funds back within 30 days)

The rules for this scheme have grown exponentially since it was first introduced and are now spread over several web pages. If you are having trouble navigating the labyrinth and need some guidance let us know, although certain aspects come under the heading of employment law, on which specialist legal advice will be necessary.

April 09, 2021

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