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Forrester Boyd is one of the largest independent chartered accountancy practices in Lincolnshire and the Humber region. Our focus on people, both clients and employees, is at the heart of our success.

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How changes to the Coronavirus Job Retention Scheme on 1 September will impact you

  • 24th August 2020

The Coronavirus Job Retention Scheme (CJRS) is changing on 1 September, and you should be aware of how this may affect you and your business.

From 1 September, 70% of usual wages up to a monthly cap of £2,187.50 will be covered by CJRS for the hours that furloughed employees do not work.

Employers must still pay furloughed employees 80% of their usual wages, so they will need to fund the remaining 10% (or more if they choose) which is not covered by CJRS.

The monthly cap is proportional to the hours not worked, so if an employee is furloughed for half their usual hours in September, employers are entitled to claim 70% of their wages for the hours they do not work up to £1,093.75 (50% of the cap).

Employers must still pay furloughed employees’ National Insurance (NI) and pension contributions from their own funds.

Please speak to us if you have any more questions about the changes to CJRS.

Any news or resources within this section should not be relied upon with regards to figures or data referred to as legislative and policy changes may have occurred.