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Hot on the heels of the Chancellor’s announcement last week that the Coronavirus Job Retention Scheme (“CJRS”) would continue until 2 December 2020, comes a further announcement that the CJRS has been extended to 31 March 2021 and confirmation that the CJRS extension will apply in Northern Ireland.
As was the case in August 2020, the Government will pay 80% of wages for hours not worked, up to a cap of £2,500, and employers will pay National Insurance and pension contributions for those hours. The Job Retention Bonus will not now be paid in February, however a retention incentive may be introduced at a later date.
Further guidance will be published next week but in the meantime, the key takeaways from the HMRC Policy Paper are as follows:
In addition to the extension of the CJRS, the Chancellor also announced that the Self Employed Income Support Scheme (SEISS) will be increased to 80% from November to January for all parts of the UK. The grant will be calculated based on 80% of 3 months’ trading profits and paid out in a single instalment capped at £7,500.
Whilst the economic challenges posed by Covid-19 continue, the Chancellor’s latest announcement will be welcomed by many employers and self-employed individuals across the UK.
This article has been produced for general information purposes and further advice should be sought from a professional advisor. Please contact our Employment Team at Cleaver Fulton Rankin for further advice or information.